Lopez majority to unleash all-out war against Piki, First Gen Officers

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April 22, 2026 | 12:00am

After two ‘poison pills’

MANILA, Philippines — The Lopez family majority, representing three branches of the clan, is preparing to unleash an all-out war against tycoon Federico “Piki” Lopez and officers of First Gen Corp.

A source with knowledge on the matter told The STAR that the camp led by Eugenio “Gabby” Lopez III, which owns 71 percent of Lopez Inc., is gearing up to file several cases against Piki and First Gen officers, including the firm’s independent directors.

These will include a request for a subpoena for what they describe as “hidden documents,” including the investment agreements on First Gen’s sale of a 60-percent stake in its natural gas business to Prime Infrastructure in 2025 for P50 billion, as well as the firm’s acquisition of a 33-percent interest in Prime Infra’s hydropower portfolio.

The cases are expected to be filed as early as Friday, the source said.

The family majority is planning to tap three law firms for the legal battle, the source also said.

Piki had previously filed a complaint before the Mandaluyong City Regional Trial Court against his cousins in their capacities as directors of Lopez Inc., which serves as the ultimate parent firm of all the Lopez Group of companies that include Lopez Holdings, First Philippine Holdings, First Gen and Energy Development Corp.

The respondents in the case include Eugenio “Gabby” Lopez III, Rafael Lopez, Miguel Ernesto Lopez, Martin Lopez and Maria Eugenia Brown.

Piki is seeking his reinstatement as president of Lopez Inc., claiming that his ouster during a Feb. 27, 2026 board meeting was illegal.

Piki claims that his removal as Lopez Inc. president was allegedly due to his refusal to infuse P2 billion in reserve funds from Lopez Inc. as fresh capital for the ailing ABS-CBN.

The Lopez family majority, however, said they voted to remove Piki as president and CEO of Lopez Inc. in a five-two board vote for cause and loss of trust.

They say that the company’s by-laws allow the majority to fire any corporate officer at will, but Piki managed to get a court order to block his ouster indefinitely.

‘Two poison pills’

The Lopez family majority has also questioned Piki’s loyalty after discovering not one but two “poison pills” in First Gen’s P62-billion hydropower deal with Prime Infra, which shields the tycoon from ouster.

The majority said the poison pills, which were only disclosed to the Philippine Stock Exchange months after the deal and only after the family majority exposed it, will kick in if Piki is removed as chairman and CEO.

It described the poison pills as “egregious self-dealing provisions” that would penalize First Gen if Piki is removed.

According to the majority, the provisions will allow Prime Infra to buy out First Gen from its gas and hydropower businesses at a 25 percent discount, or a loss of about P24 billion.

“In other words, it protects Piki from losing his job and at the same time, if the pill is triggered, benefits only Prime. The shareholders of First Gen are thrown under the bus. So who is Piki working for?” the Lopez majority said.

“Not content with selling away our gas crown jewel, Piki made sure he would remain on top – and relevant – but at everybody else’s expense. More than a lifetime’s worth of money owned by other people was put on the line all for one man’s job security. And it was all done in secrecy,” it said.

First Gen earlier defended the alleged poison pill, saying that the change of management control (CMC) provisions in its agreements with Prime Infra were requested by Razon’s group and not by Piki.

First Gen explained that the CMC provision serves as a significant protection mechanism for a business partner and is recognized as a relatively standard provision often in contracts for projects in industries such as energy and infrastructure, which involve huge investments.

The company said the provision is also known as the “key man clause” because the success of projects under contracts with this provision depends heavily on the competence, relationships or reputation of certain individuals.

The continued active involvement of these “key men” is deemed essential by the party requesting the clause, it said.

First Gen noted that Prime Infra’s request for inclusion of the CMC provisions shows the level of trust and confidence that the group has in Piki and his management team.

FPH postpones stock meet

Piki, in a First Gen town hall meeting last Friday, told employees that there is no need to take sides regarding the ongoing dispute within the Lopez family, an official present in the meeting told The STAR.

Key messages of Piki’s impromptu speech, the source said, were focused on “professionalism” and “doing your job.”

FPH in a stock exchange filing, meanwhile, said its board approved to defer the holding of the company’s 2026 annual stockholders’ meeting, which was previously scheduled for May 28.

FPH said its board resolved to “defer the meeting until such time that the issues relating to the legal dispute between FPH chairman and CEO Federico Lopez and Lopez Inc. are resolved.”