Phoenix Petroleum Philippines Inc. signed an agreement to acquire Petronas Dagangan Berhad’s liquefied petroleum gas business in the Philippines for $126.1 million, or P6.268 billion.
Phoenix Petroleum will acquire 100 percent of Petronas Energy Philippines Inc. and 40 percent of its affiliate Duta Inc. to pave the way for the oil firm’s entry into the LPG business.
“In terms of business and operations, the company is able to expand its product portfolio to include LPG,” Phoenix Petroleum said in a disclosure to the stock exchange.
The total purchase price of $126.1 million will be satisfied entirely via cash for both companies.
Phoenix Petroleum will deposit $24 million (P1.193 billion) within three days after the signing of the share purchase agreements while the balance of $96.1 million (P4.773 billion will be paid in full after approval of the Philippine Competition Commission.
