Filipino billionaire Razon buys 60 per cent of First Gen's gas business for $896 million

Prime Infra, the infrastructure business arm of Filipino businessman Enrique K. Razon Jr, is buying 60 per cent of First Gen Corp's gas assets for 50 billion pesos ($896.44 million), the Philippine energy company said on Monday.

The parties signed a preliminary agreement, which includes an upcoming plant located in Batangas province, south of Manila, First Gen said in a statement.

First Gen is backed by the influential Lopez family, which will retain a 40% stake in the gas business that the company is selling.

The Lopez family is also the controlling shareholder of Abs-Cbn, the largest broadcaster in the country.

The deal marks the latest transaction in the Philippines' energy sector, following a $3.3 billion gas and LNG joint venture signed bySan Miguel Corp. with Aboitiz Power and a unit of Manila Electric Co.