First Philippine rejects KKR’s bid for First Gen shares

First Philippine Holdings Corp. (FPHC) said on Monday its unit has rejected an acquisition proposal from KKR & Co. for shares in First Gen Corp., citing the strategic value of the energy assets held by the power producer.

The rejection follows KKR’s unsolicited offer, which was submitted in recent weeks. First Gen, a subsidiary of FPHC, operates power plants in the Philippines and is a key player in the country’s energy sector. The company did not disclose financial terms of the rejected bid.

KKR had sought to acquire a significant stake in First Gen, according to sources familiar with the matter. The private equity firm has been expanding its footprint in Asia’s energy and infrastructure sectors in recent years.

First Philippine Holdings emphasized that First Gen remains integral to its long-term growth strategy. The company did not provide further details on the decision or potential alternatives under consideration.

The rejection underscores the challenges global investors face in gaining access to strategic assets in the Philippines, where local conglomerates often prioritize control over foreign ownership in critical industries.

FPHC shares were little changed in early trading on Monday, reflecting limited immediate market reaction to the announcement.