Dennis Uy invests in Manny Pangilinan's PXP Energy
In a disclosure to the Philippine Stock Exchange, PXP Energy announced that it approved the subscription of Uy's Dennison Holdings Corporation to 340 million common shares at a price of P11.85 apiece.
The deal gives Uy's holding firm a total ownership interest of 14.78% in PXP Energy.
PXP Energy also approved the subscription by another Pangilinan-led company, Philex Mining Corporation, to 260 million common shares. The deal increases Philex Mining's stake in PXP from 19.76% to 25.91%.
PXP Energy will be raising some P7 billion from the subscriptions.
"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 disclosure reads.
The deal also specifies that Dennison will grant "preferential rights" to PXP Energy and acquire up to 49% interest in the planned joint venture of Uy's Phoenix Petroleum and China National Offshore Oil Corporation (CNOOC).
Uy's Phoenix Petroleum was able to strike a deal with a unit of CNOOC last June to develop a receiving terminal for imported liquefied natural gas in the Philippines.
PXP Energy directly and indirectly owns oil and gas exploration and production assets in the Philippines, and indirectly owns an exploration asset located in offshore Peru.
The company previously called for the lifting of the moratorium on exploration activities in the West Philippine Sea, and even went on to say that the move is of "national interest."
PXP Energy has a stake of about 79% in Forum Energy, a London-listed firm that has a controlling interest in offshore exploration Service Contract (SC) 72 in the West Philippine Sea.
The Department of Energy suspended operations within the disputed waters in 2015, as the Philippines pursued international arbitration.
With China asserting ownership of almost the entire South China Sea, exploration efforts of PXP Energy were stalled. – Rappler.com