Davao City-based businessman Dennis Uy sold a 25-percent stake in Phoenix Petroleum Philippines Inc. to a Singapore-based company for P4 billion in a bid to finance a $300-million resort and casino in Cebu province.
Phoenix Petroleum said in a filing with the stock exchange major shareholders Udenna Corp. and Udenna Management & Resources Corp., two companies led by the Uy family, sold a combined 25-percent ownership in Phoenix Petroleum to ES Consultancy Group Inc.
ES Group acquired 340.27 million common shares in Phoenix Petroluem through special block sale at P12 per share, a 5.4-percent premium over the stock’s closing price of P11.38 per share on Monday.
ES Group is a company that focuses on financial strategy, corporate mergers and acquisitions, as well as joint ventures.
Udenna Group said it welcomed the entry of ES Group in Phoenix Petroleum.
Proceeds from the sale will give Udenna additional equity capital, thereby strengthening its balance sheet to support other businesses. In particular, it will finance the property developments that Udenna Development Corp. will undertake in the future, it said.
The additional capital will provide a part of the required funds for the development of Lapu-Lapu Leisure Mactan, a $300-million integrated resort and casino planned 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,” Uy, the founder and chairman of Udenna said.
“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,” 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.
“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,” Uy said.
Phoenix Petroleum said the entry of ES Group would ensure the continued expansion of the company not only in the domestic market but in the Asean region as well.
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