BIZ BUZZ: SEC, PSE asked to probe Lopez fray
The Lopez family feud is taking another turn—this time, with a direct call for regulators to step in.
The group of Lopez Inc. shareholders led by Eugenio “Gabby” Lopez III is now urging both the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) to investigate what it claims were delayed disclosures tied to controversial “poison pill” provisions.
At the center of the dispute is Lopez-led First Gen Corp. The group that calls itself “Lopez majority” alleges that key provisions tied to multibillion-peso deals were only disclosed months after the transactions had been announced.
“The two poison pills that made sure Federico “Piki” Lopez would keep his job were disclosed six months and two 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 group said on Wednesday.
These provisions, the group said, were linked to First Gen’s deals with Prime Infrastructure Capital Inc.—including the P50-billion sale of gas assets and the subsequent acquisition of a stake in a hydropower business.
The group claims the “poison pills” could expose First Gen to penalties of up to P24 billion, an amount it said is large enough to materially affect dividends and share prices. That scale, they argue, warranted immediate disclosure under market rules.
Instead, the provisions only surfaced after the Lopez majority had raised the issue, prompting a clarification request from the exchange. First Gen later said one clause would only take effect if another had been triggered—raising more questions than answers, according to the family group.
The group also questioned how a provision tied to a later transaction could have existed earlier, hinting at possible retroactive structuring or incomplete disclosure. It is now asking whether the board, including independent directors, had full visibility over the agreements.
The issue adds to long-running governance concerns tied to the leadership of Piki, whom Gabby’s group earlier removed as president and CEO of Lopez Inc. for “loss of trust”—a move now under court dispute.
For the majority, the latest clash boils down to transparency.
They said management’s approach to disclosure must change “if the market is to be protected,” even as they continue to seek access to the underlying investment agreements.
With regulators now being drawn into the fray, the stakes are rising—not just for the Lopez family, but for investors watching how governance issues could ripple across one of the country’s key energy firms.
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