Phoenix raises P807M via sale of treasury shares

Phoenix Petroleum Philippines Inc. sold some 70 million treasury shares to raise about P807 million to relieve the company of its financial obligations.

The Davao-based firm said in a disclosure to the Philippine Stock Exchange it had sold 70,193,400 common shares in treasury on Oct. 30 at P11.50 per share.

This the issued shares of Phoenix to 1.43 billion shares. As of press time, the stock traded at P11.70 per share.

The sale of treasury shares comes after a string of company announcements of acquisitions and investments both here and overseas.

The transaction was made on the same day that Phoenix announced its intention to buy Philippine FamilyMart CVS Inc.’s chain of 67 convenience stores.

On Oct. 30, the Ayala and Tantoco groups said they had signed a memorandum of understanding to sell PFM.

In September, Phoenix said it was mustering P510 million to set up a trading company that would be based in Singapore to facilitate its international businesses.

The company said in a statement its board of directors had approved the borrowing of such amount—in pesos or the equivalent in US dollars—to bankroll the establishment of the trading firm.

Phoenix said the trading firm would mainly serve in facilitating and negotiating the supply and trading of the company’s fuel products.

Phoenix completed last August its acquisition for $126 million (about P6 billion) of the liquefied petroleum gas business of Malaysia’s Petroliam Nasional Bhd in the Philippines.

The acquisition involved the Malaysian giant’s security and commodity service business, Duta Inc., for about P304 million.

Yesterday, Phoenix said proceeds from the sale of common shares in treasury “shall be used to retire existing debt of the company.”