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The Phoenix Petroleum Philippines, Inc. board of directors, led by Dennis A. Uy, has given management the signal to divest certain corporate assets for its debt management activities.
In a disclosure to the exchange on Tuesday, the company said the transactions will cover the “transfer, sale, mortgage or disposition of certain corporate properties, assets or investments” that may be relevant to the success of the company’s financial management program.
Phoenix Petroleum management has been authorized to enter into negotiations “under reasonable and acceptable terms and conditions advantageous to the corporation” with any interested entity.
The board’s decision comes a day after the company told the stock market that the company or any of its subsidiaries “is open to considering any investor willing to invest and who believes in the operations. [of Phoenix Petroleum] and you can add more value to your business activities. “
He said such offers are nothing new to the company and that it has been open to investors who believe in its core business and can add value to its operations, finances and shareholders.
“We see these as growth opportunities,” he said.
But Phoenix Petroleum said the dilution of its shares had not been a topic of discussion at any level of the company.
Last week, Davao-based businessman Uy sold Chelsea Logistics and Infrastructure Holdings Corp.’s entire stake in 2GO Group, Inc. for about 31.73% of the shares to SM Investments Corp. to P8.50 each.
The transaction will make 2GO a subsidiary of SMIC, as the Sy-led company already has an existing 30.49% stake in 2GO.
Chelsea is the transport and logistics company of the Udenna Group led by Uy. Chelsea said it would use the proceeds from the sale of 2GO to pay off the loan it acquired to buy 2GO shares in 2017.
In January, a Department of Energy (DoE) official said the agency had to cancel the “notice to proceed” issued to Uy’s $ 2 billion import terminal project under Tanglawan Philippine LNG, Inc.
“We were forced to cancel their notice to proceed as, in fact, they essentially withdrew their plans because they were unable to reach a financial close,” said Undersecretary Leonido J. Pulido III at a Senate hearing. “They are no longer pursuing their project.”
It added that the recall was caused by a “business problem.” Tanglawan is controlled by Phoenix Petroleum.
Phoenix Petroleum shares fell 2.38% or P0.28 on Tuesday to close at P11.50 each. – Keren Concepcion G. Valmonte
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