Udenna sells 25% stake in Phoenix for R4B

The Udenna Group has sold a 25 percent stake in Phoenix Petroleum Philippines, Inc. to ES Consultancy Group, Inc. for R4 billion to raise cash for its investments in the property development and gaming businesses.

ES Consultancy acquired 25 percent of the outstanding capital stock of Phoenix Petroleum from Udenna Corporation (UC) and Udenna Management & Resources Corporation (UMRC) through a special block sale in the equities market.

In a statement, Udenna said it welcomed another partner in pushing Phoenix Petroleum to further growth.

“We welcome another partner in steering Phoenix Petroleum to a higher path. Having more partners on board ushers in new ideas, a wider perspective and greater discipline to the country’s biggest and fastest-growing independent oil company,” Udenna Founder and Chairman Dennis A.Uy said.

The Udenna Group maintains control over Phoenix Petroleum, a company whose listing on the Philippine Stock Exchange in 2007 helped accelerate its growth outside Mindanao.

A partnership with ESGI – a firm focused on financial strategy, capital mergers and acquisitions as well as joint ventures – helps ensure the Udenna Group’s continued expansion not only in the domestic market but also in the Association of Southeast Asian Nations.

Proceeds from the sale will give UC additional equity capital, thereby strengthening its balance sheet to support other businesses. In particular, it will finance the property developments that Udenna Development (UDEVCO) Corporation will undertake in the future.

The additional capital will provide part of the required funds for the development of Lapu-Lapu Leisure Mactan, a $300-million integrated resort and casino planned on a 12hectare 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,” Uy said.