‘Poison pill’ shields Piki from ouster – Lopez majority

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April 14, 2026 | 12:00am

MANILA, Philippines — The Lopez family majority, representing three branches of the clan, has claimed that a “poison pill” is contained in First Gen Corp.’s P62-billion hydropower deal with Prime Infrastructure, shielding Federico “Piki” Lopez from ouster.

In a statement, the majority said the Lopez Group is at risk of being penalized by P16 billion if Piki and his “designates” are removed from First Gen for whatever reason.

Piki is the chairman of publicly listed First Gen, a leading producer of clean and renewable energy.

The Lopez majority said details of the poison pill, ordinarily used to block a hostile takeover, are kept from them as well as from the shareholders at large since it has never been disclosed to the Philippines Stock Exchange.

“This is self-dealing at the expense of all First Gen shareholders and for the exclusive benefit of Piki and his cohorts. We only learned about it and the whole transaction when it was presented at a board meeting that concealed the investment under ‘Other Matters’ and discussed in an executive session for only one hour,” the majority said.

“What we know is that if Piki and the present First Gen management are removed, Prime will have the option to buy out First Gen’s 33 percent equity in Prime’s hydropower business at a 25 percent discount, or more than P16 billion off the P62-billion investment,” it said.

The family majority, which owns 71 percent of Lopez Inc., has previously questioned the rationale of Piki’s business decisions involving First Gen.

It claimed these decisions were never presented to the majority shareholders for approval until the board meeting where it was discussed in just an hour.

The majority, in a 5-2 board vote late last month, ousted Piki as president and CEO of Lopez Inc., the ultimate mother company of the group, citing the “loss of trust and confidence” allegedly stemming from incidents prior to the Feb. 27, 2026 special meeting involving First Gen.

Piki obtained a court order, blocking his ouster and barring the majority from removing him from all other Lopez companies where Lopez Inc. has shares.

First Gen, however, has maintained that all its contracts and agreements are entered into only upon thorough review and approval by its board of directors.

As a publicly listed company, First Gen noted that it observes with fidelity the rights of all stockholders to equal access to material information by avoiding its premature and selective disclosure.

Meanwhile, earnings of Lopez Holdings Corp. ballooned in 2025, driven by the robust performance of the group’s power generation and real estate segments.

Lopez Holdings, led by Piki as chairman and CEO, recorded a net income attributable to equity holders of the parent of P12.05 billion last year, 90 percent higher than the P6.34 billion posted in 2024.

On top of the strong performance of its power generation and real estate segments, earnings were also boosted by the net one-off gains registered during the year resulting from two strategic transactions.

These transactions were the divestment of First Gen’s 60-percent equity stake in the gas business and Rockwell Land’s recent acquisition of a majority controlling stake in the Alabang Commercial Center.

First Gen reported an eight percent increase in attributable recurring net income for 2025 at $264 million compared to $245 million in 2024.

The company’s hydro portfolio soared in earnings as it generated more kilowatt-hours due to higher water levels.

Rockwell, for its part, raised P10 billion through a successful bond offering last month, with proceeds to be used by the company to fund the capital for its residential and commercial development projects.

Rockwell is known for its flagship mixed-use development, Rockwell Center Makati, which is anchored by the Power Plant Mall, regarded as a premium retail and lifestyle destination in the country.