January 9, 2019 | 12:03 am
THE holding
company of Davao City businessman Dennis A. Uy has paid the 1% downpayment for
its subscription to common shares in PXP Energy Corp., the listed oil and gas
exploration company told the stock exchange on Tuesday.
Dennison Holdings Corp.
paid P40.29 million as initial payment for the PXP Energy shares or 1% of the
total subscription price of P4.03 billion for the total 340 million shares.
This follows the
forging of an amended subscription agreement between the two parties on Dec.
26, 2018, wherein they agreed to reschedule and accelerate the full payment of
Dennison’s subscription to not later than March 31, 2019.
The amendment also
called for Dennison to pay the downpayment on or before Jan. 7, 2019.
On Tuesday, shares in
PXP Energy rose 1.16% to P15.66 each.
The amended
subscription agreement follows the announcement of PXP Energy on Oct. 26, 2018
on the subscription agreement forged on the same date between the company
chaired by Manuel V. Pangilinan and Dennison.
In the event Dennison
fails to pay the entire subscription price by March 31, the entire downpayment
will be forfeited in favor of Mr. Pangilinan’s company and the subscription agreement
will be terminated at the option of PXP Energy.
After the subscription
to the shares and full payment of the subscription price, Dennison will be
entitled to at least one seat in the PXP Energy board, as well as to nominate
the board’s vice-chairman. Mr. Uy’s firm is also entitled to all other rights
of a shareholder.
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 amendment came
after PXP Energy disclosed on Dec. 21 that Forum (GSEC 101) Ltd., or Forum
GSEC, had sent a letter of request on the same date to the Department of Energy
(DoE) to lift the force majeure imposed on Service Contract (SC) 72 on Recto
Bank.
Forum Energy Ltd., in
which PXP Energy holds a direct and indirect interest of 78.98%, has a 70%
participating interest in SC 72 located in Northwest Palawan, through its
wholly owned subsidiary Forum GSEC.
PXP Energy has a total
economic interest of 53.1% in SC 72.
The DoE placed SC 72
under force majeure on March 2, 2015 because the contract area falls within the
area that was at that time the subject of an arbitration process with China.
PHOENIX TO RAISE P5B
Separately, Mr. Uy’s Phoenix Petroleum Philippines, Inc. told the stock exchange on Tuesday that its stockholders had approved the issuance and offering of up to P5 billion of perpetual preferred shares.
Separately, Mr. Uy’s Phoenix Petroleum Philippines, Inc. told the stock exchange on Tuesday that its stockholders had approved the issuance and offering of up to P5 billion of perpetual preferred shares.
The preferred shares
total 5 million at an issue price of P1,000 per share. The issuance is subject
to the registration with the Securities and Exchange Commission and listing
with the Philippine Stock Exchange.
“[W]e would like to
announce that the same board action was approved and assented to by
stockholders representing the majority of the Corporation’s Issued and
Outstanding capital stock,” the company said.
The disclosure
corrected Phoenix’s earlier notice on the same day about an issuance of
perpetual preferred shares of up to P10 billion at an issue price of P1,000.
On Tuesday, shares in
Phoenix Petroleum were unchanged at P10.80 each. — Victor V. Saulon
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