PT Barito Renewables Energy has submitted an unsolicited proposal to acquire Energy Development Corp. (EDC) in a transaction that values the equity of the Philippines’ premier geothermal producer at approximately ₱308 billion.

The development, which could be one of the largest potential clean energy acquisitions in Southeast Asia, was confirmed by EDC’s parent company, First Gen Corp., in a regulatory filing to the Philippine Stock Exchange (PSE) on Wednesday, July 15, following reports by Bloomberg News.

If debt is included in the final transaction, the total enterprise valuation of EDC could scale significantly higher, representing a massive consolidation of the region’s top geothermal powerhouses.

News of the blockbuster bid sent shares of parent company First Gen skyrocketing as much as 33 percent in trading on Wednesday, its largest intraday gain since its 2006 initial public offering.

First Gen, led by Chief Executive Officer Federico “Piki” Lopez, was quick to temper market speculation. In a regulatory disclosure, the utility clarified that it has yet to accept the proposal, noting that no definitive agreements have been signed and no financial advisors have been appointed.

Any final transaction remains subject to rigorous due diligence, the execution of binding agreements, and regulatory approvals.

The transaction is a major play by Barito Renewables, the clean energy arm of Jakarta-based conglomerate Barito Pacific. Through its controlling stake in Star Energy Geothermal Holding Group, Barito is already the dominant baseload clean power producer in Indonesia.

A successful acquisition would marry the resources of two leading geothermal nations. Indonesia and the Philippines currently stand as the second and third largest geothermal producers globally, with Indonesia alone accounting for roughly 40 percent of the world’s total reserves.

EDC is the crown jewel of the Philippine renewable energy sector, commanding an installed capacity of 1,302.78 megawatts. Originally founded in 1976 by the state-owned Philippine National Oil Co. to buffer the nation from global oil shocks, EDC was privatized and acquired by the Lopez Group in 2007, later voluntarily delisting from the local bourse in 2018. Its current minority backers include Macquarie Asset Management and Singapore sovereign wealth investor GIC Pte.

Analysts view the bid as a robust signal of foreign investor appetite for the Philippines, which recently relaxed restrictions on foreign ownership in the renewable energy sector. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that influxes of foreign capital into local green energy would expand domestic power supply, help drive down electricity prices for consumers, and curb the nation's heavy reliance on costly fuel imports.

While mega-buyouts of domestic utilities often trigger debate, Ricafort believes the security implications are manageable.

He pointed out that national security concerns remain minimal as long as corporate ownership does not become heavily concentrated in a single foreign player and the domestic power market continues to maintain healthy competition and viable alternatives.