A major internal conflict within the Lopez business empire has erupted over a controversial clause in a massive hydropower agreement that could cost shareholders over $285 million.
The majority controlling faction of Lopez Inc., led by Eugenio “Gabby” Lopez III, is demanding answers about a provision in the ₱62-billion ($1.1 billion) deal between First Gen Corp. and Prime Infrastructure Capital Inc. The group alleges this "poison pill" is designed to protect the position of First Gen CEO Federico “Piki” Lopez at the expense of other stakeholders.
“This is self-dealing at the expense of all First Gen shareholders and for the exclusive benefit of Piki and his cohorts,” the majority group stated.
According to their disclosure, the clause grants Prime Infra the right to purchase First Gen's 33% stake in the hydropower venture at a 25% discount if Piki Lopez and his designated management team are removed from the company. This penalty could translate to losses exceeding ₱16 billion ($285 million) from the total deal value.
The group claims the transaction lacked proper transparency, being presented under "other matters" and discussed in a one-hour executive session without full disclosure to the Philippine Stock Exchange, where First Gen is listed.
Tensions escalated after the Lopez Inc. board voted 5-2 to oust Piki Lopez for "loss of trust and confidence," only to have him secure a court order blocking his removal across all Lopez-affiliated companies.
Further governance concerns were raised about the investment structure itself. First Gen initially acquired a 40% stake for ₱75 billion, which was later reduced to 33% for over ₱62 billion. The majority shareholders allege they weren't properly consulted on these decisions.
“We do not know why he didn’t just go down to 33 percent plus one share to keep his veto power and whether Prime Infra paid a premium for being handed full control. We are blind to everything,” the statement added.
The controversy unfolds against a backdrop of strong financial performance for the conglomerate. Lopez Holdings Corp. reported a 90% surge in 2025 net income to ₱12.05 billion, fueled by robust power and real estate operations alongside gains from First Gen's gas asset divestment.