PANGILINAN-LED PXP Energy Corp. (PXP) said it has increased its direct shareholding in Forum Energy Limited (Forum) to 69.5 percent from 48.8 percent previously.
“This increases total direct and indirect interest in Forum from 67.5 percent to 77.5 percent,” the company said in a disclosure to the Philippine Stock Exchange (PSE) on Friday.
The additional interest was acquired through a subscription to 39.35 million new ordinary shares of Forum, said PXP Energy, formerly known as Philex Petroleum Corporation.
The new shares were issued at approximately $0.30 per share for a total consideration of $11.805 million, which was funded through the conversion into equity of a portion of PXP’s $18.3 million loan to a subsidiary of Forum.
It added that Tidemark Holdings Ltd. also subscribed to 6.67 million shares of Forum in the amount of $2 million, paid for in cash.
As a result of these transactions, Tidemark’s holdings in Forum decreased from 27.1 percent to 20 percent, PXP Energy said.
Forum is a UK-incorporated oiI and gas exploration and production company with a focus in the Philippines.
Forum holds the license for Service Contract 72 (SC72), which covers Recto Bank, known internationally as Reed Bank. Its principal asset is a 70-percent interest in SC 72, an 8,800-square kilometer offshore petroleum license situated west of Palawan Island in the West Philippine Sea.
The acquisition of additional shares in Forum did not result in a change in the board of Forum, PXP Energy said.