MANILA -- U.S. investment firm KKR has acquired an 11.9% stake in First Gen, a leading Philippine power producer, for 9.6 billion pesos ($193 million), in a move that expands in presence in Asian infrastructure.
The buyout fund originally aimed to acquire 6% to 9% of First Gen in a tender offer through June 24. But the offer price of 22.5 pesos per share, a roughly 27% premium, drew a more subscriptions than expected.
First Gen is the power-generating arm of the Lopez Group, the Philippine conglomerate headed by the Lopez family. First Gen accounted for 21% of domestic electricity production last year. Its portfolio includes natural gas plants as well as geothermal and hydropower stations.
"We have long viewed First Gen as an exceptional business with a high-caliber leadership team," David Luboff, a partner at KKR, said in a statement.
Federico Lopez, the chairman and CEO of First Gen, said he looks forward to engaging with KKR and other investors in pursuit of a "decarbonized future."