PHILEX Petroleum Corp. raised its stake in UK-based oil and gas firm Forum Energy Plc. after the share purchase offer by the Manuel V. Pangilinan-led Philippine company was accepted by Forum’s qualified shareholders.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Philex Petroleum said it currently holds direct and indirect interest of 60.49 percent in Forum, which “will increase to 67.19 percent upon completion of the offer.”
Forum said it has received an offer from Philex Petroleum to purchase 2.38 million ordinary shares at 20 pence (32 US cents) each. The offered shares represent 6.71 percent of the entire issued share capital of the company.
It said payment of the price to shareholders who accepted the offer is expected to be transmitted by July 6 this year.
Forum said that following the implementation of the offer, the Philex Concert Parties will hold 25.07 million ordinary shares, representing approximately 70.53 percent of the entire issued share capital of the firm.
Meanwhile, Tidemark Holdings Ltd., Forum’s second largest shareholder, will continue to hold 9.64 million ordinary shares, representing about 27.14 percent of the entire issued share capital of the company.
Tidemark Holdings is a company controlled by former trade minister Roberto Ongpin.
Earlier reports said Philex Petroleum had offered to acquire 36.17 percent of Forum Energy’s ordinary shares from qualifying shareholders. Tidemark Holdings decided not to accept Philex Petroleum’s offer.
Philex Petroleum holds a 60.49 percent interest in Forum Energy, which has a 70 percent stake in Service Contract (SC) 72 granted by the Department of Energy (DOE) in February 2010.
SC 72 is an oil exploration project by Forum in the disputed Reed Bank located in the West Philippine Sea.
Philex Petroleum is a wholly owned subsidiary of Philex Mining Corp, a company that directly and indirectly owns oil and gas exploration and production assets in the country.