Phoenix Petroleum looking for partner to beef up capitalization
Posted on December 26th, 2009
Phoenix Petroleum Philippines, Inc. is looking for a strategic financial partner that can help it pump up its investment portfolio. This is keeping in line with company’s goal of becoming one of the key players among the league of independents in deregulated oil industry.
Dennis A. Uy, president and chief executive officer of Phoenix Petroleum, said the company is scouting for a local or foreign partner who would share in the company’s vision and beef up its capital for its expansion projects. He added that they are in talks with several parties at present, although he refused to reveal their identities for the moment.
Phoenix Petroleum was first established in Mindanao, it started moving to Luzon after acquisition of its depot facility in Batangas. With its proposed investment plan, the company expects to further build up its retail network in Luzon and Mindanao.
Aside from its plan to bring in financial partner, Phoenix Petroleum is also working on prospects for a follow-on offering at the Philippine Stock Exchange (PSE) in the next three years. Uy said, “We are planning to have a follow-on offering in the next three years… the shares to be offered will be up to 20 percent.”
Prospects of mergers and consolidation with other players in the industry is also in the company’s vision. It is looking for future acquisition opportunities, which is still a part of its portfolio-shoring up opportunities. “We will also be looking at people or players who are open for mergers and acquisitions so long as this is aligned with our objectives,” Uy added.
Recently, Phoenix Petroleum signed an agreement with the Social Security System (SSS) on the latter’s capital stock subscription. The agreement gives the social security agency the option for an aggregate 10 percent equity stake in the oil company.
