Nelson Morales

SSS, GSIS, KKR investments in First Gen at risk due to 'poison pill' provisions, says Lopez majority

Article (news)

MANILA — The Social Security System (SSS) and the Government Service Insurance System (GSIS) could lose billions in investments in First Gen if the two poison pill provisions that protect Federico &quot;Piki Lopez&quot; are triggered, the Lopez majority said on Wednesday.Global investment firm KKR could potentially be the biggest loser, the majority of the Lopez family said in a statement.Under First Gen and Enrique Razon&#x27;s deal, Prime Infrastructure could acquire remaining First Gen&#x27;s gas and hydropower assets for P125 billion or at a 25 percent discount if the &quot;change in management control&quot; clause is triggered or if Piki Lopez is removed from his post.&quot;The huge loss would reduce the capacity of SSS and GSIS to assist their private- and government-sector members and to pay for their retirement benefits, including monthly pensions,&quot; the statement said. “Why would one person’s job be worth billions of pesos of other people’s money? This is a scandal, and the government should investigate, especially now that First Gen has been found to have disclosed the two pills two and six months late, and only because the majority exposed them,” it added.The 71 percent majority of the Lopez group said it is crucial for the government to investigate since First Gen has refused to release copies of the investment agreements to determine whether the poison pill clauses existed at the time the investments were disclosed, or were just afterthought.The provision also removes the right of the board and shareholders to replace management, which the majority said is a fundamental right of shareholders especially for listed companies.First Gen&#x27;s acquisition of 40 percent stake in Prime&#x27;s hydropower business for P75 billion, which was later reduced to 33 percent weeks later, must also be examined, the majority said. “Was this done to avoid seeking Philippine Competition Commission approvals?”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 obtained a court order blocking his ouster.For its part, First Gen earlier said it observes shareholders&#x27; rights to equal access to material information to avoid premature and selective disclosures. It added that it only enters into contracts that are approved by its board of directors.Lopez Inc. is the parent firm of ABS-CBN. <div> </div>

The Social Security System (SSS) and the Government Service Insurance System (GSIS) could lose billions in investments in First Gen if the two poison pill provisions that protect Federico "Piki Lopez" are triggered, the Lopez majority said on Wednesday.

The Social Security System (SSS) and the Government Service Insurance System (GSIS) could lose billions in investments in First Gen if the two poison pill provisions that protect Federico "Piki Lopez" are triggered, the Lopez majority said on Wednesday.

SSS, GSIS, KKR investments in First Gen at risk due to 'poison pill' provisions, says Lopez majority

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SSS, GSIS, KKR investments in First Gen at risk due to 'poison pill' provisions, says Lopez majority

Published April 29, 2026 03:08 PM PHT

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Updated April 29, 2026 03:16 PM PHT

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