The majority faction of the Lopez family has accused First Gen Corp. Chairman Federico “Piki” Lopez of “doublespeak” for initiating legal action while simultaneously calling for peace talks.

The family bloc noted that on the exact same day Piki Lopez publicly welcomed peace with his cousins, he filed indirect contempt complaints against them.

“What he says and what he does are two different things,” the majority group said in a statement after receiving copies of the complaints last Tuesday.

During the May 28 annual stockholders' meeting of First Gen, Piki expressed hope for reconciliation within the family. However, the legal complaint was filed later that afternoon.

“This is Piki’s doublespeak. He talks peace while simultaneously attacking. We are keeping our options open,” the majority stated.

The dispute escalated after majority family members individually wrote to First Gen requesting documentation regarding its hydropower deal with Prime Infrastructure Capital Inc.

In his complaint, Piki argued that the cousins exposed themselves to legal liability by declaring in their letters that they would withhold approval of management and board actions regarding the deal if the documents were not provided.

Conversely, the majority faction claimed Piki was forced to disclose select information about the deal six months late—and only after the majority issued press statements exposing alleged “hidden poison pills.” The group claims these clauses could penalize First Gen, and ultimately its shareholders, by as much as ₱24 billion if Piki and his designees are removed from the company.

The Philippine Stock Exchange (PSE) has yet to act on the delayed disclosure.

Also last Tuesday, the Lopez majority alleged that Piki effectively funded the bulk of Prime Infrastructure’s hydropower project by paying a hefty ₱50-billion premium.

The group claimed Piki agreed to pay Prime Infrastructure ₱50 billion as a transaction premium and ₱25 billion as construction equity in an initial ₱75-billion deal to acquire 40 percent of Prime’s hydropower business. They noted that First Gen failed to disclose this premium to the stock market, stating instead 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 while retaining 67 percent of the profits,” the majority group claimed. “In effect, Piki funded the whole project—one 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.”

First Gen firmly rejected the allegations, stating the claims reflect a “fundamental misunderstanding of corporate finance.” The company clarified that the financial figures cited by the family bloc stem from an outdated 40 percent acquisition framework.

The transaction was revised early this year, with First Gen securing a 33 percent equity stake in Prime Hydropower Energy Inc. for a total consideration of ₱61.875 billion. Prime Hydropower, a subsidiary of Prime Infrastructure Capital Inc., is currently developing the Wawa and Pakil pumped-storage hydro facilities.

First Gen broke down the ₱61.875 billion cash outlay into two components: ₱12.5 billion paid to Prime Infrastructure for 6.67 percent of outstanding common shares and ₱49.375 billion allocated toward a 26.33 percent interest via primary share subscriptions.

The firm maintained that such premiums are standard practice in commercial mergers and acquisitions and are fully integrated into the asset's overall valuation.

Furthermore, First Gen stated that the premium reflects the substantial upfront costs and capital Prime Infrastructure invested over five years to completely de-risk the projects prior to First Gen's entry.

Prime Infrastructure achieved financial close in 2025, secured long-term contracts under the government’s Green Energy Auction Program, and has already advanced early-stage construction. (James A. Loyola)