Businessman acquires 9.9% stake in Phoenix

Top Direct Investments, a company owned by businessman Miguel Jose Valencia, acquired a 9.92-percent stake in Phoenix Petroleum Philippines Inc. through a special block sale valued at P2.13 billion.

Phoenix Petroleum disclosed to the Philippine Stock Exchange Top Direct Investments, an investment and holding company organized under the laws of the Virgin Islands, acquired 142 million shares at P15 apiece.

“TDI’s acquisition of equity interest in the issuer covered by this report is for investment purposes in the petroleum industry. TDI, does not, however, intend to acquire the shares of the issuer for purposes of taking over the same,” it said.

Phoenix Petroleum is one of the country’s most aggressive oil companies today. The company recently diversified to the convenience store business by acquiring Philippine FamilyMart CVS Inc., or Philippine Family Mart. 

Phoenix Petroleum earlier said the acquisition of PFM would complement its retail fuel business, with 518 stations nationwide, and marked its entry into the fast-growing domestic convenience retail market. The value of the transaction was not disclosed.

The company also completed last year its acquisition of the liquefied petroleum gas  business of Petronas Energy Philippines Inc.

Phoenix’s net income reached P1.437 billion in first nine months, up 59 percent year-on-year, boosted by its diversification into the LPG business.

“Phoenix Petroleum’s strong performance in the third quarter shows our commitment to growing the business through customer focus, operational excellence and acquisition of complementary businesses,” said Phoenix president and chief executive officer Dennis Uy earlier.

Excluding the non-recurring gains and expenses related to the acquisition, core income reached ₱1.081 billion, higher by nine percent year-on-year.

Revenues from the core petroleum business during the period rose 37 percent to ₱32.6 billion on the back of robust volume growth in retail, lubricants and LPG.

The company  is also  establishing a Singapore-based trading company that will trade the company’s fuel products with a capital expenditure budget allocation of P510 million.

Phoenix Petroleum’s trading firm will also engage in the trading business in Singapore “for the purposes of eventually service other third parties and customers.”

Topics: Phoenix
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