KKR to pay US$192 million for stake in Philippine power company First Gen
- American private equity giant is betting on future growth in southeast Asia with third investment in Philippines since December
- KKR to acquire 427 million shares, or a 11.9 per cent stake, in First Gen following a tender offer
Kohlberg Kravis Roberts (KKR) agreed on Monday to buy a 11.9 per cent stake in Philippine power producer First Gen Corporation for 9.6 billion Philippine pesos (US$193 million) in its latest infrastructure bet in southeast Asia.
The American private equity giant is betting on future growth in Asia, particularly in the infrastructure and real estate spaces.
For example, the company acquired solar power assets in India from Shapoorji Pallonji Infrastructure Capital for US$204 million in April and led a consortium that acquired a 6 per cent stake in Vietnamese real estate developer Vinhomes Joing Stock Company for US$650 million in June.
“We have long viewed First Gen as an exceptional business with a high-calibre leadership team, and we have great respect for the Lopez family for building this strong, well-established company,” David Luboff, head of Asia-Pacific infrastructure at KKR, said in a statement. “This is an exciting and further milestone for KKR’s Asia-Pacific infrastructure business.”
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KKR, through an entity owned by its investment funds, will pay 22.50 Philippine pesos a share on July 1 to acquire 427 million shares in First Gen following a tender offer.
Shares of First Gen rose 0.44 per cent to 22.60 Philippine pesos in midmorning trading on the Philippine Stock Exchange.
