Cheyenne Suarez

Lopez majority says Piki agreed to pay P50 billion as premium for 'scandalous' hydro deal

Article (news)

ABS-CBN News

<div><br/></div><p>MANILA — The Lopez majority said on Tuesday that First Gen CEO Federico Piki Lopez has agreed to pay Prime Infrastructure P50 billion as transaction premium and P25 billion as construction equity in First Gen&#x27;s P75 billion deal to buy 40 percent of Prime&#x27;s hydropower business. </p><p>&quot;The Lopez majority found out about this &#x27;scandalous&#x27; premium only recently from board documents. This is on top of the poison pills that would cost First Gen around P24 billion and putting its sister companies in default if Piki is removed from his job,&quot; the statement said. </p><p>A few weeks after closing the deal, the majority said Piki reduced First Gen&#x27;s stake to 33 percent from 40 percent or from P75 billion to P61.875 billion. The majority said that at this reduced amount, Prime needs to put up only P625 million to finish the project in 2030 for 67 percent of the profits.</p><p>The stake reduction in effect meant First Gen gave up its strategic minority veto rights and surrendered to Prime absolute control. If First Gen added a few more shares to keep its veto power, it would have cost only P625 million, the majority said.</p><p>“In effect, Piki funded the whole project that is yet to be built, has no cash flow for years, and faces multiple completion risks. This is a horrible deal for First Gen. As we have been saying, we do not and cannot trust Piki,&quot; the majority said, adding that the Philippine Stock Exchange and the Securities and Exchange Commission must require First Gen to tell all to protect the investing public.</p><p>“Did Prime pay a premium for getting full control of the hydropower company? If so, how much and who got it? So much is being hidden from the investing public that regulators must step in,&quot; they added.</p><p>Piki Lopez has been asked by the majority to produce the documents regarding the original and reduced transactions to no avail, the majority said.</p><p>In an earlier statement, First Gen said it only enters into contracts that were thoroughly evaluated and approved by its board of directors. ABS-CBN has reached out to First Gen but it has yet to release a statement as of writing.</p><p>The Lopez majority earlier voted to oust Piki Lopez as president and COE of Lopez Inc due to loss of trust. But the resolution was later withdrawn. Piki Lopez said the withdrawal could be the first step to resolve the family feud. </p><p>Lopez Inc is the parent firm of ABS-CBN Corp.</p><div><a href="https://www.abs-cbn.com/news/business/2026/3/31/71-lopez-majority-piki-ousted-for-cause-loss-of-trust-1439" rel="noopener noreferrer" target="_blank"><strong>71% Lopez majority: Piki ousted for cause, loss of trust</strong></a></div><div><strong><a href="https://www.abs-cbn.com/news/business/2026/5/14/lopez-majority-withdraws-resolution-removing-piki-majority-is-open-to-a-fair-solution-1304" rel="noopener noreferrer" target="_blank">Lopez majority withdraws resolution removing Piki; Majority is open to a fair solution but ready for more action</a></strong></div><div><a href="https://www.abs-cbn.com/news/business/2026/5/15/read-piki-lopez-on-lopez-majority-s-withdrawal-of-resolution-for-his-removal-1101" rel="noopener noreferrer" target="_blank"><strong>READ: Federico ‘Piki’ Lopez statement on the Lopez Majority’s decision to withdraw resolution seeking his removal</strong></a></div>

<p>The Lopez majority said on Tuesday that First Gen CEO Federico Piki Lopez has agreed to pay Prime Infrastructure P50 billion as transaction premium and P25 billion as construction equity in First Gen's P75 billion deal to buy 40 percent of Prime's hydropower business.</p>

The Lopez majority said on Tuesday that First Gen CEO Federico Piki Lopez has agreed to pay Prime Infrastructure P50 billion as transaction premium and P25 billion as construction equity in First Gen's P75 billion deal to buy 40 percent of Prime's hydropower business.