Key Takeaways
- • Macquarie Asset Management and GIC are exploring a sale of their joint stake in Energy Development Corporation (EDC), a Philippine geothermal producer, in a transaction that could be valued at approximately $2bn, according to Bloomberg.
- • The two investors collectively hold around one-third of EDC and have reportedly appointed Goldman Sachs to advise on strategic options, including a possible divestment.
- • The stake was acquired for approximately $1.3bn in 2017, implying a potential gain of roughly $700m on the investment at the reported valuation.
- • Infrastructure funds and industry participants have reportedly shown preliminary interest, but discussions remain at an early stage.
- • The potential exit follows a non-binding $5bn takeover proposal for EDC from Indonesia's Barito Renewables Energy in July, which First Gen Corporation said it had not entered discussions over.
Summary
Macquarie Asset Management and Singapore sovereign wealth fund GIC are exploring the potential sale of their joint stake in Energy Development Corporation (EDC), the Philippine geothermal energy producer, in a transaction that could be valued at approximately $2bn, according to a report by Bloomberg. The investors collectively own around one-third of EDC and have reportedly appointed Goldman Sachs to advise on strategic options, including a possible divestment.
Infrastructure investment funds and industry participants have reportedly expressed preliminary interest in the holding, although discussions remain at an early stage. A Macquarie-managed fund and a GIC affiliate acquired the stake for approximately $1.3bn in 2017, so the reported valuation would represent a substantial markup on the original cost.
The potential exit follows a non-binding $5bn takeover proposal for EDC submitted by Indonesia's Barito Renewables Energy in July. EDC shareholder First Gen Corporation confirmed it had not entered discussions over that offer.
First Gen, controlled by the Lopez family, has investments spanning geothermal, hydroelectric, wind, solar and natural gas assets. Separately, KKR exited its $410m investment in First Gen in September after its proposal to take the business private at 35 Philippine pesos per share was rejected.
Infrastructure investment funds and industry participants have reportedly expressed preliminary interest in the holding, although discussions remain at an early stage. A Macquarie-managed fund and a GIC affiliate acquired the stake for approximately $1.3bn in 2017, so the reported valuation would represent a substantial markup on the original cost.
The potential exit follows a non-binding $5bn takeover proposal for EDC submitted by Indonesia's Barito Renewables Energy in July. EDC shareholder First Gen Corporation confirmed it had not entered discussions over that offer.
First Gen, controlled by the Lopez family, has investments spanning geothermal, hydroelectric, wind, solar and natural gas assets. Separately, KKR exited its $410m investment in First Gen in September after its proposal to take the business private at 35 Philippine pesos per share was rejected.
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