The internal power struggle within one of the Philippines’ most storied business dynasties has shifted to the regulatory arena.
The faction led by former ABS-CBN Chairman Emeritus Eugenio “Gabby” Lopez III has formally called on the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) to investigate First Gen Corporation over the alleged delayed disclosure of “poison pill” provisions.
The bloc claims these clauses could potentially trigger an estimated ₱24 billion in losses for the energy firm, threatening the interests of the investing public.
Allegations of Delayed Disclosure
In a statement released on Wednesday, the Gabby Lopez camp urged regulators to probe why specific clauses, which reportedly protect the tenure of Lopez Inc. President Federico “Piki” Lopez, were not disclosed until months after multi-billion-peso deals with Enrique Razon Jr.’s Prime Infrastructure Capital were finalized.
“The two poison pills… were disclosed 6 months and 2 months late, respectively, in clear violation of stock market rules meant to protect the investing public by giving them full, fair, accurate, and timely information,” the family statement said.
The ₱24 Billion Dispute
The controversy centers on two massive transactions: a ₱50 billion sale of gas assets in November 2025 and a ₱75 billion hydropower acquisition in February 2026.
According to the allegations, the agreements contain a “change-of-control” provision. If Piki Lopez is removed as CEO, Prime Infrastructure reportedly gains the option to buy out First Gen’s remaining stakes at a 25% discount.
Gabby’s camp estimates that this discount would effectively wipe out ₱24 billion in shareholder value—roughly a third of First Gen’s market capitalization—consequently impacting future dividends and share prices.
Chronology and “Prescient” Filings
The Gabby faction noted that First Gen only admitted to these provisions following a clarification request from the PSE.
In its official reply, the company claimed that the November 2025 provision would only activate if the subsequent February 2026 “pill” is triggered.
The group, however, challenged the logic of this explanation, questioning how a legal agreement signed in late 2025 could reference a transaction that had not yet occurred.
Corporate Civil War
The escalating legal battle follows a major fracture in the family’s parent company, Lopez Inc. In February 2026, the board voted 5-2 to fire Piki Lopez as President and CEO for “cause and loss of trust.”
Despite the vote, Piki has maintained his leadership role at First Gen through a court-issued status quo ante order.
As of press time, the SEC and PSE have yet to confirm if a formal investigation has been launched.