Philippines' First Gen rules out geothermal unit sale amid takeover speculation

Sept 21 (Reuters) — Philippine power producer First Gen Corp said on Monday that it has no plans to divest its geothermal unit, Energy Development Corp (EDC). Indonesian energy firm PT Barito Renewables is the only company that has expressed interest in a potential acquisition of EDC, First Gen said in a stock exchange filing. Here are some more details: First Gen in mid-July confirmed media reports that said PT Barito Renewables had made a non-binding offer of about $5 billion to buy EDC. EDC, First Gen's geothermal unit, owns and operates 13 integrated power stations in Leyte, Bicol, Southern Negros, and North Cotabato, the company website showed. Prior to November 2007, EDC was a government-owned and controlled corporation, known as Philippine National Oil Company-Energy Development Corporation (PNOC-EDC). First Gen on Monday also confirmed that it plans to allocate up to 160 billion Philippine pesos ($2.55 billion) over the next five years for renewable energy projects spanning hydropower, geothermal, wind and solar. Shares of First Gen fell as much as 4.3% by 0612 GMT, and Barito Renewables was down as much 2.2%. Barito Renewables did not immediately respond to a Reuters.