First Philippine Rejects KKR Offer for First Gen

First Philippine Holdings Corp. notified the Philippine Stock Exchange that it has rejected a non-binding offer from KKR (KKR) to acquire an 8.43% stake in First Gen Corp. The approach focused on additional shares in First Gen, a major player in the Philippine renewable energy sector.

In its disclosure, First Philippine stated that KKR’s proposal "does not represent First Gen’s true value." The company’s response signals a clear disagreement with the valuation implied by the private equity firm’s offer for the targeted stake.

Because the offer was non-binding, it did not constitute a finalized transaction and was subject to further negotiation and due diligence. With the formal rejection, there is no agreed deal in place for KKR to increase its ownership in First Gen through this proposal.

By explicitly stating that the proposal undervalued First Gen, First Philippine highlighted its confidence in the company’s underlying worth. The rejection indicates that the controlling shareholder is not willing to cede additional ownership at the terms put forward in the non-binding bid.

The decision also affects expectations around potential changes in corporate control or ownership structure at First Gen. Without an accepted offer, any shift toward greater private equity involvement in the company remains uncertain, and no new timetable for discussions has been disclosed.

The episode underscores different perspectives between a strategic shareholder and a financial investor on how to price a large renewable energy business in the Philippines. It also shows how public disclosures around such bids can influence market perceptions of value.

Following the disclosure of the rejection, First Gen shares experienced sharp volatility in trading. Market summaries published around the event reported sizeable one-day declines, though the exact intraday percentage drops varied across data providers.

Different trading snapshots showed inconsistent figures for the magnitude of the share-price move, reflecting discrepancies in timing, intraday lows, or calculation methods. Despite these variations, the data pointed to a notably negative market reaction in the immediate aftermath of the parent’s decision.

The trading response suggests that investors were actively reassessing First Gen’s near-term prospects for a potential transaction involving KKR. With the proposal rejected and no replacement terms announced, the market is left to value First Gen without a concrete external deal benchmark.