The collective leadership of the Lopez family, representing the 71% majority of Lopez Inc., has issued a definitive public statement detailing the reasons behind the removal of Federico “Piki” Lopez as company president.
The statement, titled “A Matter of Trust and Governance,” marks the first time three family branches have spoken in unison to address the brewing corporate dispute.
According to the group, the decision was driven by a fundamental breakdown in fiduciary duty and transparency. The majority alleges that significant multi-billion peso transactions involving First Gen Corp.—the group’s power arm—were executed without the knowledge or consultation of the parent company’s board.
“Each of the three branches of the 71% have come together to collectively issue this public statement. This matter should have stayed private. But Piki chose to make it public. Over time, we’ve lost our trust and confidence in our cousin, Piki Lopez.”
The statement highlights two major transactions: the P50-billion sale of a 60% stake in First Gen’s natural gas business to Prime Infrastructure last November, and the recent P62-billion acquisition of a stake in Prime’s hydropower business.
The majority claims these “crown jewels” were leveraged without proper disclosure, describing the move as a “circumvention of corporate governance.”
A central point of contention involves the discovery of “poison pill” provisions embedded in these deals. These clauses allegedly stipulate that if Piki Lopez is removed from management, First Gen would be forced to pay Prime Infrastructure P24 billion and grant them buy-out rights at a 25% discount.
“Through the poison pills, Piki secured his position as chairman and CEO and secured management control of the company, effectively making him indispensable because the cost of removing him, even for non-performance, would be too great.”
While Piki Lopez remains a member of the board, the 71% majority emphasizes that his removal as president was a necessary step to protect the legacy and interests of all shareholders.
The group maintains that their actions are rooted in upholding the family’s core values of accountability.
“Our only motive has been to do the right thing. It has never been to rob any one individual of their future or reputation… It is by taking this action that we will achieve our main goal to do what’s right, protect the shareholders, safeguard the company and its employees, and take care of the legacy entrusted to us.”
The statement concludes by affirming that the majority will no longer engage in public debate but will instead speak through their future corporate actions and legal filings.