Energy Development Corp. (EDC) has stated it is not currently engaged in discussions regarding the $5 billion unsolicited proposal from Indonesia's PT Barito Renewables Energy (BREN) to acquire the geothermal producer.
The clarification comes as the market digests the initial shock of the bid, which was first reported as a non-binding offer to take over the Philippine renewable energy subsidiary of First Gen Corp. While EDC confirms no active negotiations are underway, the company has not dismissed the offer outright, leaving the door open for future engagement.
The $5 billion valuation, equivalent to approximately P308 billion, represents a significant premium and has triggered renewed interest in the Philippine power sector.
The $5 billion valuation, equivalent to approximately P308 billion, represents a significant premium and has triggered renewed interest in the Philippine power sector.
Investors are now assessing the likelihood of a formal counter-proposal or a revised bid structure from BREN.
The lack of immediate dismissal suggests that while the current terms may not be acceptable, the strategic value of EDC's geothermal assets remains a focal point for cross-border energy consolidation.
This development adds a layer of complexity to First Gen Corp.'s corporate strategy, as the parent company navigates the implications of the unsolicited bid for its renewable energy arm.