First Gen Confirms $5 Billion Takeover Offer for EDC from Indonesia's Barito Renewables

First Gen Corporation, a prominent player in the Philippines’ renewable energy sector, has confirmed receiving an unsolicited, non-binding offer from Indonesia's PT Barito Renewables Energy Tbk (BREN) to acquire its geothermal subsidiary, Energy Development Corporation (EDC), for around $5 billion (approximately ₱308 billion). This announcement was made on July 16, 2026, and is subject to due diligence and regulatory approvals.

In a disclosure to the stock exchange, First Gen clarified that the proposal remains at a preliminary stage, with no discussions or agreements signed between the parties involved. The company emphasized that it has not appointed any advisors for this potential transaction. EDC, which is the largest producer of geothermal energy in the Philippines, holds a significant position in the market, accounting for about 20% of the country's installed renewable energy capacity, with a total installed capacity of 1,480.19 megawatts (MW) across various energy sources including geothermal, wind, hydro, and solar.

First Gen's shares experienced notable volatility following the announcement, initially rising by as much as 33.37% to an intraday high of ₱22.30 before closing down 1.71% at ₱19.50 per share. Analysts noted that the unsolicited offer could unlock shareholder value, especially given the company's current market valuation discount. Juan Paolo E. Colet, managing director at China Bank Capital Corp., indicated that such a transaction could allow First Gen to return a meaningful amount of capital to shareholders while reinvesting in more profitable clean energy ventures.

“Given First Gen’s persistent market valuation discount, such a transaction represents an opportunity to return a meaningful amount of capital to shareholders while simultaneously recycling proceeds into more profitable clean energy investments.”Juan Paolo E. Colet, Managing Director, China Bank Capital Corp.

EDC was established in 1976 under the Philippine National Oil Company to develop the country’s geothermal resources. First Gen acquired a controlling stake in EDC for ₱58.5 billion through privatization in 2007. The company's revenues are heavily reliant on EDC, which contributed ₱48.6 billion in revenues last year, making up 87% of First Gen's total income.

Barito Renewables, part of the larger Indonesian conglomerate PT Barito Pacific Tbk, is recognized for its investments in renewable energy, including a majority stake in Star Energy Geothermal, Indonesia’s largest geothermal producer. The growing interest from Indonesian firms in the Philippines' renewable energy sector reflects a broader trend of cross-border investments in Southeast Asia’s energy landscape.