$5-Billion EDC Offer Signals Potential Landmark Deal In Philippine Energy
- July 21, 2026
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Lopez-led First Gen Corp. has confirmed receiving an unsolicited, non-binding offer from Indonesia’s PT Barito Renewables Energy Tbk to acquire Energy Development Corp. (EDC) in a deal that values the Philippine geothermal giant at about $5 billion (roughly ₱308 billion), potentially setting the stage for one of the largest energy transactions in the country’s history.
In a disclosure to the Philippine Stock Exchange, First Gen said the proposal remains unsolicited, indicative, and non-binding, adding that no discussions have taken place between the parties, no agreements have been executed, and no financial advisers have been appointed.
Strategic Renewable Energy Target
The proposed acquisition centers on EDC, the country’s largest geothermal power producer and one of the biggest geothermal companies globally. The company operates 16 power plants with a combined installed capacity of about 1,480 megawatts across geothermal, wind, hydro and solar facilities, representing roughly one-fifth of the Philippines’ installed renewable energy capacity.
Its geothermal portfolio includes the Tongonan complex in Leyte, the Southern Negros geothermal field, the Bacon-Manito complex spanning Albay and Sorsogon, and the Mt. Apo geothermal facility in Mindanao. These assets provide round-the-clock baseload electricity, making geothermal one of the country’s most valuable renewable energy resources.
Last year, EDC generated ₱48.6 billion, accounting for about 87% of First Gen’s revenues, underscoring its importance to the Lopez-led energy company following the partial divestment of its natural gas business.
Barito Renewables is the renewable energy arm of Indonesia’s PT Barito Pacific Tbk and controls Star Energy Geothermal, Indonesia’s largest geothermal producer. An acquisition of EDC would combine two of Southeast Asia’s largest geothermal portfolios under one owner while significantly expanding Barito’s regional footprint.
Ownership Structure
Although First Gen controls EDC through a 65% voting interest, the company’s economic ownership is substantially lower.
Based on First Gen’s latest disclosures, it holds only 45.8% of EDC’s economic interest, while Philippines Renewable Energy Holdings Corp. (PREHC) owns roughly 54% of the economic value despite holding a minority voting stake.
The distinction means that a transaction involving only PREHC’s interest could occur without proceeds flowing to the Lopez group, while a full acquisition would require negotiations with both shareholder blocs.
At the proposed $5-billion equity valuation, First Gen’s economic share would amount to roughly $2.29 billion, or about ₱141 billion, while PREHC’s portion would represent a larger share of the sale proceeds.
Governance Implications
Any sale involving First Gen’s EDC stake would carry significant corporate implications because EDC now represents the bulk of First Gen’s operating assets.
Following the sale of a majority interest in its natural gas business to Prime Infrastructure in 2025, EDC has become the company’s principal operating platform. Under the Revised Corporation Code, disposing of substantially all corporate assets generally requires approval from shareholders representing at least two-thirds of outstanding capital stock.
That voting structure places ultimate influence within the Lopez corporate hierarchy, where First Philippine Holdings controls First Gen and, in turn, traces ownership to Lopez Holdings and the privately held Lopez Inc.
The potential transaction also comes amid an ongoing governance dispute within the Lopez family over leadership and strategic direction, adding another layer of complexity should negotiations ever advance beyond the preliminary stage.
Market Reaction
The disclosure immediately attracted investor attention. First Gen shares surged by as much as 33.37% during Wednesday’s trading before closing 18.42% higher at ₱19.80, reflecting optimism that a transaction could unlock value.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the proposal could benefit shareholders if it progresses. He said monetizing EDC at the proposed valuation could allow First Gen to return capital to investors while funding future clean energy investments, noting that the company has historically traded below what many investors consider its intrinsic value.
However, First Gen emphasized that the proposal remains highly preliminary and may never lead to a transaction.
Prized Asset
Founded in 1976 under the Philippine National Oil Co. during the global oil crisis, EDC was established to develop indigenous geothermal resources and strengthen the country’s energy security. First Gen acquired government control of the company through privatization in 2007.
Today, EDC remains the world’s largest vertically integrated geothermal producer and has expanded beyond the Philippines through geothermal development projects in Indonesia with a potential capacity of about 440 MW.
For Barito, acquiring EDC would represent a rare opportunity to secure decades of geothermal expertise, operating assets, reservoir knowledge, and long-term renewable generation capacity.
For First Gen and the Lopez group, the offer provides an external valuation of one of the country’s most strategic energy assets while raising broader questions about ownership, capital allocation, and the future direction of one of the Philippines’ leading renewable energy companies.
Source:
https://www.philstar.com/business/2026/07/16/2542390/edc-gets-5-billion-offer-indonesian-group
