Indonesian billionaire Prajogo Pangestu is seeking to acquire Energy Development Corp. (EDC), the Philippines’ largest geothermal company, through his controlled company Barito Renewables Energy in a proposed deal valued at US$5 billion (16/07).

Barito Renewables Energy has submitted an unsolicited, indicative, and non-binding offer to acquire EDC as Pangestu expands his energy business across Southeast Asia, according to Forbes.

The proposal is subject to due diligence and required regulatory approvals, according to Manila-based First Gen Corp., EDC’s largest shareholder.

Barito Renewables Energy Proposes US$5 Billion EDC Acquisition

First Gen Corp. said the potential transaction is still at an early stage and no agreement has been reached.

"To date, there have been no discussions between the parties, no agreements have been signed," First Gen said in a statement, adding that it has not hired any financial advisers for the transaction.

First Gen is controlled by Philippine tycoon Federico Lopez and his family, who acquired EDC in 2007 after the company was previously state-owned.

Energy Development Corp Operates 1,300 MW Geothermal Power Plants

Energy Development Corp. owns and operates 16 geothermal power plants across the Philippines with a combined installed capacity of 1,300 megawatts.

The company also has nearly 300 megawatts of capacity from hydroelectric, solar, and wind power projects.

Juan Paolo E. Colet, managing director at China Bank Capital Corp., said the proposed acquisition could create value for shareholders if it is completed.

"Given First Gen’s persistent market valuation discount, such a transaction represents an opportunity to return a meaningful amount of capital to shareholders while simultaneously recycling proceeds into more profitable clean energy investments," Colet said, according to Philippine newspaper Business World.

Prajogo Pangestu Expands Energy Portfolio Across Southeast Asia

Prajogo Pangestu has expanded his energy portfolio since 2023, when he listed coal miner Petrindo Jaya Kreasi and Barito Renewables Energy.

Barito Renewables Energy is the holding company of Star Energy Geothermal Group, Indonesia’s largest geothermal producer, with 886 megawatts of installed capacity across three geothermal projects in West Java.

In 2024, Pangestu partnered with Philippine tycoon Jaime Augusto Zobel de Ayala’s ACEN to develop wind projects in Indonesia.

Pangestu also expanded his business activities in Singapore. In April 2025, a joint venture between Chandra Asri Pacific and commodities company Glencore completed the acquisition of Shell’s refinery and petrochemical assets in the city-state.

Five months later, Chandra Asri acquired Esso’s gas station network in Singapore.

With a net worth of $15.4 billion based on Forbes’ real-time data, Pangestu ranks as Indonesia’s second-wealthiest person, behind Low Tuck Kwong, who has a net worth of $16.1 billion.

Pangestu built his fortune from timber company Barito Pacific, which he transformed into an energy and petrochemicals conglomerate.

The Lopez family has a net worth of $285 million and ranks among the Philippines’ wealthiest families. The family has interests in energy, real estate, and media through ABS-CBN, which was once the country’s largest television broadcaster before the Philippine Congress declined to renew its franchise in 2020.

PHOTO: EDC

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