October 26, 2018 | 12:10 am By Victor
V. Saulon, Sub-editor
PXP ENERGY CORP. is
raising P7.11 billion from the subscription of its shares by affiliate Philex
Mining Corp., and a holding firm owned by businessman Dennis A. Uy.
In a disclosure on
Thursday, the crude oil and natural gas explorer said its board of directors
had approved the subscription by Uy’s Dennison Holdings Corp. to 340 million
common shares at a price of P11.85 per share.
The quoted price per
share represents a 20% discount to the 90-day volume weighted average price of
the company’s shares subject to the execution of a definitive subscription
agreement.
The board has also
approved the subscription by Philex Mining to 260 million common shares of PXP
Energy under the same terms, subject to the execution of a definitive
agreement.
“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,” said the company, which
has interests in various petroleum service contracts in the Philippines and
Peru.
The combined shares
subscribed to by Dennison and Philex Mining amount to 600 million, for a total
subscription price of P7.11 billion at P11.85 per share.
In a previous
disclosure to the stock exchange, Dennison was described as a domestic company
beneficially owned and controlled by Mr. Uy.
PXP Energy said
Dennison had signed with it a non-binding term sheet on Thursday.
“Details of the
transaction will be disclosed upon execution of the definitive subscription
agreement,” it said.
“After the subscription
of Dennison and Philex to the foregoing shares, Dennison will have a total
ownership interest in PXP of 14.78%, while Philex will increase its
shareholding in PXP from 19.76% to 25.91%,” it added.
On Thursday, shares in
PXP Energy jumped 7.32% to close at P17.60 each. Philex Mining gained 7.69% to
P3.50 each.
Mr. Uy is the president
and chief executive officer of Phoenix Petroleum Philippines, Inc., which
disclosed in June that it had signed a memorandum of understanding with a unit
of China National Offshore Oil Corp. (CNOOC) to develop a receiving terminal
for imported liquefied natural gas (LNG) in the country.
PXP Energy directly and
indirectly owns 77.5% of Forum Energy Ltd., a London-listed company whose main
asset is a controlling interest in offshore exploration Service Contract (SC)
72 west of Palawan island in the disputed West Philippine Sea.
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