Uy sells 25% stake in Phoenix to finance Cebu casino project

Dennis Uy

The group of businessman Dennis Uy cut its controlling stake in Phoenix Petroleum Philippines Inc. to partly finance its next big bet, a beachfront casino project in Cebu.

Uy-led Udenna Corp. and Udenna Management and Resources Corp. sold 25 percent of Phoenix Petroleum on Monday to ES Consultancy Group Inc. for P4 billion, a statement from the group showed.

The deal was done via a special block sale.

Proceeds will mainly be used to finance the development of a hotel and casino project in Mactan Island, located near Cebu’s main international airport.

The $300 million casino resort was dubbed the Lapu-Lapu Leisure Mactan, and its completion would mark Uy’s foray into the gaming sector.

Uy also owns Chelsea Logistics, a company he hopes to take public by the middle of this year.

Uy recently obtained a license to develop the 12-hectare Lapu-Lapu Leisure Mactan. When it was announced this month, the group said it planned to open portions of the casino, hotel and retail shops by 2019.

Phoenix’s shares, listed on the Philippine Stock Exchange, rose 1.97 percent to P11.38 a share on Monday, due to the slight premium at which ES Consultancy acquired its stake.

Udenna still controls Phoenix, which has a public float of about 27 percent.

According to the statement, Lapu-Lapu Leisure Mactan will be developed by Udenna unit Udenna Development Corp., or Udevco.

“Our investments in Udevco are anchored on our shared vision for the Philippines to become a premier destination for business and tourism,” Uy said in the statement.

“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.

ES Consultancy is involved in financial strategy, capital mergers and acquisitions, including joint venture deals.

According to Uy’s group, this would “help ensure the Udenna Group’s continued expansion not only in the domestic market but also in the Association of Southeast Asian Nations.”

However, it did not elaborate.

“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,” Uy said.