Philippine Power: Geothermal-heavy EDC attracts US$7bn EV bid; potential buyers apart from Barito

Research evidence excerpt

Philippine Power: Geothermal-heavy EDC attracts US$7bn EV bid; potential buyers apart from Barito

J P M O R G A N Asia Pacific Equity Research

15 July 2026

Philippine Power

Geothermal-heavy EDC attracts US$7bn EV bid;

potential buyers apart from Barito

Indonesia's PT Barito Renewables (BREN IJ) has made an unsolicited, non-binding Power

ACoffer to acquire an undisclosed stake in Energy Development Corp. (EDC, Unlisted) Jelline Gaza, CFA

at US$5bn equity value and US$7bn EV (link), as confirmed by parent First Gen (63-2) 8878-1131

(FGEN PM, NC) (link). The news follows earlier reports of a possible divestment of jelline.gaza@jpmchase.com

a 47.5% stake in EDC by Philippines Renewable Energy Holdings (PHREC), a JV J.P. Morgan Securities Philippines, Inc.

between GIC and Macquarie Infra (link, link). EDC, a pure-play renewable genco, Jeanette Yutan

operates the Philippines' largest geothermal portfolio with 1,544MW in total (63-2) 8878-1188

jeanette.g.yutan@jpmorgan.com

attributable capacity, 1,303MW of which is geothermal. The offer implies a US J.P. Morgan Securities Philippines, Inc.

$4.5mn EV/MW, 13-50% above the US$3-4mn/MW replacement cost for

Arnanto Januri

geothermal and 2.3x the implied Php135.8bn equity valuation from PHREC’s tender (622-1) 5291 8047

offer in 2017 (link). Among domestic gencos, we believe potential contending arnanto.januri@jpmorgan.com

bidders could be: (1) the Razon Group (Prime Infra), given its recent partnerships PT J.P. Morgan Sekuritas Indonesia

with EDC’s parent First Gen (FGEN PM, Non-Covered) in natgas and pumped hydro

storage; and (2) Meralco, given its strong cash generation, market share headroom

(6% currently), and EDC's potential to add scale with the planned infusion of MGen

RE assets into SPNEC (link).