A few weeks after declaring a ceasefire, the Lopez majority group launched a new bombshell against First Gen Corp. Chairman Federico “Piki” Lopez, alleging that he funded the bulk of Prime Infrastructure Capital’s hydropower project by paying a hefty ₱50-billion premium.

In a statement, the majority bloc claimed Piki agreed to pay Prime Infrastructure ₱50 billion as a transaction premium and ₱25 billion as construction equity in First Gen’s ₱75-billion deal to acquire a 40 percent stake in Prime’s hydropower business.

The Lopez majority said it discovered this premium only recently through board documents. According to the group, this is on top of "poison pills" that would cost First Gen around ₱24 billion and trigger defaults across its sister companies if Piki is removed from his post.

The group noted that First Gen failed to disclose the premium to the stock market, choosing instead to state that “₱62.5 billion will be used to directly fund the construction and the equity requirements of the projects.”

A few weeks after the deal closed early this year, the acquisition was scaled down to a 33 percent stake worth ₱61.875 billion.

“At this reduced amount, Prime needs to put up only ₱625 million to finish the project in 2030 for 67 percent of the profits,” the group claimed.

The Lopez majority pointed out that, “In effect, Piki funded the whole project that is yet to be built, has no cash flow for years, and faces multiple completion risks. This is a horrible deal for First Gen. As we have been saying, we do not and cannot trust Piki.”

Consequently, they called on the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC) to compel First Gen to fully disclose the transaction details to protect the investing public.

“The stake reduction in effect meant that First Gen gave up its strategic minority veto rights and surrendered absolute control to Prime. Had First Gen added a few more shares to keep its veto power, it would have cost only ₱625 million,” the majority said.

The bloc also questioned: “Did Prime pay a premium for getting full control of the hydropower company? If so, how much and who got it? So much is being hidden from the investing public that regulators must step in.”

The family majority added that it has repeatedly asked Piki for documents regarding both the original and scaled-down transactions, to no avail.

Furthermore, the majority wants to know if the board—particularly its independent members—was given adequate information ahead of time to review the transaction and properly protect the interests of the company and its shareholders. First Gen’s independent board members are Manuel Ayala, Alicia Rita Morales, and Edgar Chua.

Last May 14, 2026, the majority group moved to de-escalate the boardroom battle by withdrawing a months-old resolution seeking Piki's immediate removal as president and chief executive officer (CEO) of Lopez Inc.

In a statement, the 71 percent majority bloc of the family-led holding company confirmed it had rescinded the Feb. 27, 2026 resolution, opening a window for private mediation among family members to mitigate further fallout from a legal dispute that has played out in the public eye.

“The withdrawal presents an opportunity for the whole family to step back, reconsider their adversarial positions, and look for options that are least injurious to the family, the Lopez group, and the investing public,” the statement read.

It added: “Harm has been done to everybody. Reputational damage is there. Our family has been in a fishbowl with everybody looking in. Agreements have been signed with undeserved financial penalties, especially for the investing public.”

However, while the majority remains open to a ceasefire—subject to a reasonable expectation of a fair compromise and access to information—it warned that it stands ready to ramp up efforts to protect its legal and pecuniary interests if no resolution is reached. (James A. Loyola)