Udenna sells 25% stake in Phoenix Petroleum
DAVAO BUSINESSMAN Dennis A. Uy’s Udenna Group sold a 25% stake in Phoenix Petroleum Philippines, Inc. to ES Consultancy Group, Inc. for P4 billion, as the company raises funds to develop a $300-million integrated resort and casino project in Cebu.
In a statement on Monday, Udenna said ES Group acquired 25% of the outstanding capital stock of the listed oil company from Udenna Corp. and Udenna Management & Resources Corp. (UMRC) through a special block sale at the stock market.
After the transaction, Udenna said it “maintains control” over Phoenix Petroleum.
In a disclosure to the stock exchange, Phoenix Petroleum said UMRC sold 264,841,348 shares, representing a 19.49% stake, at P12 each or a total of P3.17 billion. Udenna Corp., on the other hand, sold 75,429,610 Phoenix Petroleum shares or a 5.55% stake for a total of P905.15 million.
“ES Group, a firm that focuses on financial strategy, corporate mergers and acquisitions, as well as joint ventures, will ensure the continued expansion of the company not only in the domestic market but in the ASEAN region as well,” Phoenix Petroleum said.
Shares in Phoenix Petroleum climbed 1.97% or 22 centavos to close at P11.38 apiece on Monday.
Proceeds of the sale will be used to partially finance Udenna Development Corp. (UDEVCO)’s Lapu-Lapu Leisure Mactan, slated to become the first integrated resort and casino outside of Metro Manila. The development will sit on a 12-hectare prime beachfront in the province of Cebu.
“Our investments in UDEVCO are anchored on our shared vision for the Philippines to become a premier destination for business and tourism,” Mr. Uy, founder and chairman of the Udenna group, was quoted as saying in a statement.
“We hope to support the country’s manufacturing and tourism sectors, among others, through our property developments. We believe these will ultimately translate to employment and better living for the Filipino people,” he added.
Phoenix Petroleum grew its net income by 11% to P283 million for the first quarter of 2017. Revenues gained 35% to P8.7 billion on the back of a better sales mix as well as the construction of more retail service stations from January to March. For 2016, the country’s biggest independent oil company reported a 21% jump in net income to P1.09 billion, driven by doubledigit growth in fuel sales.
The Udenna Group is currently ramping up the expansion of its businesses. By July, the group seeks to bring its shipping arm Chelsea Logistics Corp. public, with an P8-billion initial public offering.
Prior to the planned expansion of Chelsea Logistics, Mr. Uy has already widened his interests in the logistics sector through integrated transport solutions provider 2GO Group, Inc.
In September 2016, Udenna Corp. disclosed the acquisition of a 32% stake in Netherlandsbased KGL Investment B.V. KGL Investment holds 60% beneficial ownership in KGLI- NM Holdings, Inc., which controls Negros Navigation Co., Inc., which in turn owns 88.31% of the 2GO Group.