May 27, 2019 | 12:05 am
BUSINESSMAN Dennis A. Uy is open to
revisiting plans with PXP Energy Corp. for a potential oil exploration venture
once government relations with China improve.
“We both agreed to not pursue it
because of the uncertainty of the government to government. But we agreed to
revisit it once there’s an opportunity,” Mr. Uy told reporters last week after
the stockholders’ meeting of another company he leads.
PXP Energy and Mr. Uy’s Dennison
Holdings Corp. entered into a subscription agreement in October 2018 where the
former will issue 340 million common shares priced at P11.85 each to the latter
for a total of P4.029 billion.
In exchange, Dennison Holdings was
to give PXP Energy or any of its affiliate companies preferential rights to
acquire up to 49% in Phoenix Petroleum Philippines Corp.’s share in its joint
venture with China National Offshore Oil Corp. (CNOOC) for the development of a
liquefied natural gas project.
Both parties, however, announced the
termination of the deal last March, highlighting that the decision was mutual.
Dennison Holdings withdrew its P40-million downpayment for the deal following
its suspension.
Mr. Uy noted that PXP Energy
Chairman Manuel V. Pangilinan has committed to invite the company once
government relations progress.
Prior to the termination of the
deal, Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd. signed a
memorandum of understanding with state-owned Philippine National Oil Co. for
their equity investment in Tanglawan Philippine LNG, Inc.
The Tanglawan project is set to
break ground within the year in time for its completion in 2023. It is seen to
have an annual capacity of 2.2 metric tons of the regasification and receiving
terminal.
On the other hand, Mr. Uy said there
are plans to pursue the follow-on offering for his holding firm Udenna Corp.
within a year’s time.
“We’re working on it. Baka in
a year’s time, depende sa regulator (Maybe in a year’s time, depending
on the regulator),” Mr. Uy said.
Udenna is in the process of
conducting a share swap with listed firm ISM Communications Corp., which will
involve the issuance of 24.058 million ISM shares to shareholders of Udenna in
exchange for two billion Udenna shares.
ISM’s public float will fall to
about 10% after the share swap. The company earlier said the target would be to
increase public ownership to 15-20% during the secondary offering.
At the same time, ISM has proposed
to increase its authorized capital stock to P75 billion from P2.8 billion to
support Udenna’s entry. ISM’s name will then be changed to Udenna Holdings
Corp.
The transaction is still pending approval
from the Securities and Exchange Commission.
Udenna’s business interests include
fuel and oil, telecommunications, logistics, hospitality, education, and
convenience stores. — Arra B. Francia
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