Phoenix set to acquire Subic company
The board of directors of publicly-listed Phoenix Petroleum Philippines Inc. has given its go-signal for the company’s acquisition of the Subic Petroleum Trading and Transport Philippines Inc., a firm at the freeport zone engaged in the trading of refined petroleum products.
Following the board’s approval, the company noted that it will “conduct due diligence for the proposed acquisition.”
From the submission of the result of the due diligence process, the company explained that the management will make onward recommendation as to how much it would be willing to invest to corner the petroleum trading firm.
The cost and terms of the acquisition will be among those to be fleshed out in the due diligence report which will then serve as the company’s guidance in the planned acquisition.
At the oil firm’s board meeting, it also approved an “investment of corporate funds to form and incorporate a new corporation,” which shall be utilized to subscribe to its majority shares and to have Chelsea Shipping Corporation as minority shareholder.
The proposed new firm, Phoenix Petroleum said, will be used for its plan in “acquiring and operating a new tanker vessel to boost and support the company’s fuel importation” as well as its proposed depot facilities expansion and the corresponding increase in fuel capacity of its depot terminals.
The Board has given its management the authority “to determine the corporate structure of said new corporation and its corporate purpose.”
With buoyed profitability and to respond to market growths, the oil firm has previously laid down plans of investing P1.5 billion this year for expansion projects, partly for the broadening of its retail network.
The company has mapped up plans of expanding further its niche in the Luzon market; while steadily growing its base in Mindanao. It has just recently reported a 140 percent jump in its core earnings to P427 million; and also surpassed its revenue target in 2010 at P14.79 billion. By MYRNA M. VELASCO - mb.com.ph