DAVAO-BASED Udenna Corp. is selling 25 percent of the outstanding total stock of its listed subsidiary Phoenix Petroleum Philippines, Inc. to ES Consultancy Group, Inc. (ESGI) for P4 billion, through a special block sale in the equity market.
“We welcome another partner in steering Phoenix Petroleum to a higher path. Having more partners on board ushers in new ideas, a wider perspective and greater discipline to the country’s biggest and fastest-growing independent oil company,” Udenna Chairman Dennis Uy said in a statement on Monday.
Proceeds from the sale will produce additional equity capital for Udenna Corp., thereby strengthening its balance sheet to support other businesses, the statement said.
“In particular, it will finance the property developments Udenna Development Corp. (UDEVCO) will undertake in the future,” Udenna said.
The additional capital will provide part of the required funds for the development of the $300 million Lapu-Lapu Leisure Mactan, an integrated resort and casino planned on a 12-hectare prime beachfront in Cebu.
“Our investments in UDEVCO are anchored on our shared vision for the Philippines to become a premier destination for business and tourism,” Uy said.
“We hope to support the country’s manufacturing and tourism sectors, among others, through our property developments. We believe these will ultimately translate to employment and better living for the Filipino people,” he added.
Davao City-based Udenna is a holding company operating through its subsidiaries that offer trading and distribution of refined petroleum products. It owns Phoenix Petroleum, which listed on the Philippine Stock Exchange (PSE) in 2007.
Udenna said Phoenix’s listing helped accelerate its growth outside Mindanao.
ESGI, a firm focused on financial strategy, capital mergers, acquisitions, and joint ventures said its acquisition helps ensure Udenna’s continued expansion not only in the domestic market but also in the Association of Southeast Asian Nations (Asean) region.