Lopezes uncover new poison pill provision

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May 7, 2026 | 12:00am

MANILA, Philippines — The Lopez family majority has uncovered a new poison pill that protects tycoon Federico “Piki” Lopez from a potential  ouster at First Gen Corp.,  as part of its agreements with Prime Infrastructure.

The majority, representing three branches of the Lopez clan, warned in a statement yesterday that Energy Development Corp., First Balfour and First Gen Corp., among First Philippine Holdings (FPH) subsidiaries, would be in default if Piki is removed from First Gen, a listed company where he sits as chairman and CEO.

The majority claimed that the third poison pill they have discovered is “actually booby traps against the very companies he is supposed to protect.”

“He has, in effect, threatened to torch the very house that sheltered him all these years. In fact, his family branch, which owns 29 percent of the Lopez group, would also lose billions, all for one reason: Piki must not lose his job,” they said.

The majority explained that once in default, companies must pay their loans forthwith or pay penalty rates, among other things.

It would make it harder for them to borrow, stunting their operations, they said further.

According to the majority, the default provision is contained in a P25-billion standby letter of credit FPH obtained from BDO to fund First Gen’s P62-billion investment in Prime Infra’s hydropower business.

The family majority said it was neither consulted nor informed about these investments and credit facilities, and had been unsuccessful in obtaining more information and documents from Piki.

The majority claimed the first two poison pills are also designed to penalize and not protect the companies under Piki if he is removed.

As part of the shareholders’ agreement between First Gen and Prime Infra, the poison pills will be triggered if a change of management control with respect to First Gen occurs during the construction period of the Wawa and Pakil projects and until the first anniversary of the commercial operations date of the projects, whichever is later.