Philex Mining Corp. said it paid P1.386 billion to increase its stake in oil and gas firm PXP Energy Corp.
“Further to our previous disclosure last 27 December 2018, please be informed that Philex Mining Corp. paid today the amount of P1,386,450,000 in relation to its subscription payable to PXP Energy Corp.,” Philex Mining said in a disclosure to the stock exchange.
PXP Energy confirmed the receipt of the payment in a separate disclosure.
Philex earlier paid a 25-percent downpayment or P770.25 million as a part of its subscription agreement involving 260 million common shares of PXP Energy at P11.85 per share, or for a total of P3.081 billion.
The remaining balance of P925 million will be paid from the date of the “call” by the PXP Energy board which was not yet disclosed.
Philex owned 19.76 percent of PXP prior to the new subscription. This will increase to 25.91 percent upon completion.
Dennison Holdings Corp. led by businessman Dennis Uy last month paid out an initial downpayment of P40.29 million for the subscription of its shares in PXP Energy with the full payment due by March 31.
Dennison agreed on Oct. 26 agreed to subscribe to 340 million common shares in PXP Energy at an anaggregate subscription price of P4.03 billion.
Dennison will have a total ownership interest in PXP of 14.78 percent once the deal was sealed.
Total subscription of both Dennison and Philex in PXP Energy reached P7.11 billion which the oil and gas firm plans to use to fund exploration projects.
“PXP intends to use the proceeds it expects to raise from the private placement to Dennison and Philex to fund its exploration activities and other oil assets within the Philippines and in Peru, and to repay its advances from Philex,” the company said earlier.
PXP Energy is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the Philippine Stock Exchange. The company directly and indirectly owns oil and gas exploration and production assets in the Philippines and other countries.
PXP, through Forum Energy Ltd., a 78.98-percent owned subsidiary, is waiting for the guidance from the government on any future activity in Service Contract 72 (Recto Bank) and SC 75 (Northwest Palawan).
Both service contracts are under force majeure amid the territorial dispute over the West Philippine Sea.