Lopez majority withdraws move to oust Piki Lopez

'The withdrawal presents an opportunity for the whole family to step back, re-consider their adversarial positions…,' says the group representing 71% of the Lopez family

MANILA, Philippines – The Lopez majority in the family’s parent firm Lopez Inc. withdrew during a board meeting on Thursday, May 14 their February resolution removing Federico “Piki” Lopez as president and CEO of the company.

In a statement, the group, which comprises 71% of Lopez Inc., said this “move opens a window for discussions among the family members,” and that they’re open to a “fair solution” to the family and intra-corporate dispute.

“The withdrawal presents an opportunity for the whole family to step back, re-consider their adversarial positions, and look for options that are least injurious to the family, the Lopez group, and the investing public,” the Lopez majority said.

They said they were “open to a ceasefire subject to a reasonable expectation of a fair compromise and access to information but is more than ready to ramp up its efforts to protect… legal and pecuniary interests…”

The Lopez majority fired Piki from Lopez Inc. in a 5-2 board vote on February 27, citing loss of trust and confidence in him due to the P125-billion deals First Gen struck with ports tycoon Enrique Razon’s Prime Infra “without any authority from the majority.”

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Piki secured an injunction from the Court of Appeals that prevented his ouster from Lopez Inc., and the case is being heard for the lifting of the injunction.

“Harm has been done to everybody. Reputational damage is there. Our family has been in a fishbowl with everybody looking in. Agreements have been signed with undeserved financial penalties especially for the investing public”, the Lopez majority said. (READ: [Vantage Point] First Gen shareholders need an antidote to a ‘poison pill’)

The group is referring to what it calls “poison pills” in the First Gen-Prime Infra power deals that would penalize the Lopez group and shareholders of First Gen up to P24 billion if he is removed from Lopez Inc. and First Gen. First Gen prefers to call these “change of management control” provisions and insists these were required by Prime Infra.

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Lopez Inc. owns 55.66% of First Philippine Holdings (FPH), which owns 67.84% of First Gen, giving Lopez Inc. an effective indirect stake in First Gen of roughly 38%.

First Gen is separately listed on the Philippine Stock Exchange with its own board. Piki Lopez is chairman and CEO of First Gen, and was president of Lopez Inc. until February 27, when the Lopez Inc. board voted to remove him for cause. – with reports from Lala Rimando/Rappler.com

Read Rappler’s special reports on the Lopez family dispute in the links below:

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