Shares of Philippine power producer First Gen Corp. dropped by a record 19% on Monday, according to Bloomberg.com. The decline followed the announcement that its parent company, First Philippine Holdings Corp. (FPH), had turned down an acquisition offer from U.S. investment firm KKR.
Bloomberg.com reports the stock fall was the largest on record for First Gen. The move came after FPH said it would not pursue KKR's proposal to acquire a stake in the company, as confirmed by multiple outlets including ABS-CBN and BusinessWorld Online.
The rejected offer centered on valuation, according to BusinessWorld Online. FPH determined that KKR's bid did not meet its expectations for the worth of First Gen, a major player in the country's energy sector. Rappler noted the offer involved the Lopez family, which controls FPH, and analyzed the potential implications of the deal had it proceeded.
KKR had proposed to buy into First Gen, but FPH's decision to decline has left investors recalibrating their outlook. The sharp sell-off reflects market disappointment over the collapse of what could have been a significant transaction for the company.
The BusinessMirror also covered the development, highlighting the parent firm's rejection of the KKR approach. No further details on the specific terms of the proposal have been made public.
What to watch next: Whether KKR revises its offer or walks away, and how First Gen's share price stabilizes in the coming sessions.
