A source with knowledge on the matter revealed that the camp led by Eugenio Lopez III is gearing up to file several cases against Federico Lopez and First Gen Corp. officers, including its independent directors.
The Lopez family majority, representing three branches of the clan,
is preparing to unleash an all-out war against tycoon Federico “Piki”
Lopez and officers of First Gen Corp.
A source with knowledge on the matter told The Philippine STAR
that the camp led by Eugenio “Gabby” Lopez III, which owns 71 percent
of Lopez Inc., is gearing up to file several cases against Piki and
First Gen officers, including its independent directors.
These
will include a request for a subpoena for what they describe as “hidden
documents,” including the investment agreements on First Gen’s sale of a
60-percent stake in its natural gas business to Prime Infrastructure in
2025 for P50 billion, as well as the firm’s acquisition of a 33-percent
interest in Prime Infra’s hydropower portfolio.
The cases are expected to be filed as early as Friday, April 24, the source said.
The family majority is planning to tap three law firms for the legal battle, the source also said.
Piki
had previously filed a complaint before the Mandaluyong City Regional
Trial Court against his cousins in their capacities as directors of
Lopez Inc., which serves as the ultimate parent firm of all the Lopez
Group of companies that include Lopez Holdings, First Philippine
Holdings, First Gen and Energy Development Corp.
The respondents
in the case include Eugenio “Gabby” Lopez III, Rafael Lopez, Miguel
Ernesto Lopez, Martin Lopez and Maria Eugenia Brown.
Piki is
seeking his reinstatement as president of Lopez Inc., claiming that his
ouster during a Feb. 27, 2026 board meeting was illegal.
Piki
claims that his removal as Lopez Inc. president was allegedly due to his
refusal to infuse P2 billion in reserve funds from Lopez Inc. as fresh
capital for the ailing ABS-CBN.
The Lopez family majority,
however, said they voted to remove Piki as president and CEO of Lopez
Inc. in a five-two board vote for cause and loss of trust.
They
say that the company’s by-laws allow the majority to fire any corporate
officer at will, but Piki managed to get a court order to block his
ouster indefinitely.
‘Two poison pills’
The
Lopez family majority has also questioned Piki’s loyalty after
discovering not one but two “poison pills” in First Gen’s P62-billion
hydropower deal with Prime Infra, which shields the tycoon from ouster.
The
majority said the poison pills, which were only disclosed to the
Philippine Stock Exchange months after the deal and only after the
family majority exposed it, will kick in if Piki is removed as chairman
and CEO.
It described the poison pills as “egregious self-dealing provisions” that would penalize First Gen if Piki is removed.
According
to the majority, the provisions will allow Prime Infra to buy out First
Gen from its gas and hydropower businesses at a 25 percent discount, or
a loss of about P24 billion.
“In other words, it protects Piki
from losing his job and at the same time, if the pill is triggered,
benefits only Prime. The shareholders of First Gen are thrown under the
bus. So who is Piki working for?” the Lopez majority said.
“Not
content with selling away our gas crown jewel, Piki made sure he would
remain on top – and relevant – but at everybody else’s expense. More
than a lifetime’s worth of money owned by other people was put on the
line all for one man’s job security. And it was all done in secrecy,” it
said.
First Gen earlier defended the alleged poison pill, saying
that the change of management control (CMC) provisions in its agreements
with Prime Infra were requested by Razon’s group and not by Piki.
First
Gen explained that the CMC provision serves as a significant protection
mechanism for a business partner and is recognized as a relatively
standard provision often in contracts for projects in industries such as
energy and infrastructure, which involve huge investments.
The
company said the provision is also known as the “key man clause” because
the success of projects under contracts with this provision depends
heavily on the competence, relationships or reputation of certain
individuals.
The continued active involvement of these “key men” is deemed essential by the party requesting the clause, it said.
First
Gen noted that Prime Infra’s request for inclusion of the CMC
provisions shows the level of trust and confidence that the group has in
Piki and his management team.
FPH postpones stock meet
Piki,
in a First Gen town hall meeting last Friday, April 17, told employees
that there is no need to take sides regarding the ongoing dispute within
the Lopez family, an official present in the meeting told The STAR.
Key messages of Piki’s impromptu speech, the source said, were focused on “professionalism” and “doing your job.”
FPH
in a stock exchange filing, meanwhile, said its board approved to defer
the holding of the company’s 2026 annual stockholders’ meeting, which
was previously scheduled for May 28.
FPH said its board resolved
to “defer the meeting until such time that the issues relating to the
legal dispute between FPH chairman and CEO Federico Lopez and Lopez Inc.
are resolved.”