Jamaine Punzalan

Article (news)

ABS-CBN News

<p>MANILA — First Gen Corporation on Thursday said the Change in Management Control (CMC) provision in its agreements with Enrique Razon&#x27;s Prime Infrastructure Capital Inc serves as a &quot;significant protection mechanism&quot; for a business partner.</p><p>In a statement, the Federico &quot;Piki&quot; Lopez-led firm clarified the provision, saying &quot;it is recognized as a relatively standard provision often in contracts for projects in industries such as energy and infrastructure which involve huge investments.&quot; </p><p>Under the deal, the CMC will occur if Federico Lopez or his designee is not the CEO of First Gen, among others. If a CMC occurs during the construction period of the Wawa and Pakil projects until the first anniversary of their commercial operations date, Prime Infra shall have the right to cause First Gen to sell its Prime Hydropower Energy Inc shares to Prime Infra at a discount.</p><p>First Gen added that Prime Infra&#x27;s request to include the clause shows its confidence in Piki Lopez and the importance of its partnership with the firm.</p><p>In a separate disclosure to the Philippine Stock Exchange, First Gen said BDO Unibank has issued standby letters for credit in the amount of P9.9 billion and P14.85 billion to support the company&#x27;s acquisition of a 33 percent stake in Prime Hydropower Energy Inc.</p><p>The issuance was also made with a &quot;leadership continuity covenants&quot; required by BDO, First Gen said. The condition will ensure leadership continuity across operating segments and subsidiaries of First Philippine Holdings Corp group of companies, it added.</p><p>&quot;The leadership continuity covenants provide, among others, that the occurrence of a Change in Management Control is an Event of Default in outstanding loans of the FPH group,&quot; the statement said.</p><p>In an earlier statement by the 71% Lopez majority, they called the provision a <a href="http://news.abs-cbn.com/news/business/2026/4/13/lopez-majority-poison-pill-in-p62b-deal-with-prime-protects-piki-from-ouster-1509">&quot;poison pill&quot; </a>and a &quot;self-dealing clause&quot; that could cost the company P16 billion in discounts. </p><div><a href="https://www.abs-cbn.com/news/business/2026/4/14/lopez-majority-calls-out-piki-for-clinging-to-post-cites-misleading-claims-1415">Lopez majority calls out Piki for clinging to post, cites misleading claims</a></div><p>In March, the majority ousted Piki as president and CEO of Lopez Inc in a 5-2 board vote due to loss of trust and confidence. He was able to keep his post by obtaining a court order that blocked his ouster.</p><div><a href="https://www.abs-cbn.com/news/business/2026/4/6/lopez-majority-on-piki-s-prime-hydro-deal-why-give-up-control-of-our-crown-jewels-1107">Lopez majority on Piki&#x27;s Prime Hydro deal: &#x27;Why give up control of our gas assets, our crown jewels&#x27;</a></div><p>Lopez Inc. is the parent firm of ABS-CBN.</p><div><a href="https://www.abs-cbn.com/news/business/2026/4/15/abs-cbn-s-official-statement-on-recent-claims-and-issues-related-to-the-lopez-family-dispute-1020">ABS-CBN’s official statement on recent claims and issues related to the Lopez family dispute</a></div>

<p>First Gen Corporation on Thursday said the Change in Management Control (CMC) provision in its agreements with Enrique Razon's Prime Infrastructure Capital Inc serves as a "significant protection mechanism" for a business partner.</p>

First Gen Corporation on Thursday said the Change in Management Control (CMC) provision in its agreements with Enrique Razon's Prime Infrastructure Capital Inc serves as a "significant protection mechanism" for a business partner.

First Gen says change of management control is 'protection mechanism' for business partner

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First Gen says change of management control is 'protection mechanism' for business partner

ABS-CBN News

Published April 16, 2026 12:55 PM PHT

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Updated April 17, 2026 11:19 AM PHT

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First Gen

Lopez Inc

Piki Lopez

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