<article>Listed oil company <a style="color: #333399;" href="http://www.dealstreetasia.com/?s=Phoenix+Petroleum+Philippines" target="_blank">Phoenix Petroleum Philippines Inc (PNX)</a> has sold its two companies raising up to $59.7 million (P3 billion).</article>

Listed oil company <a style="color: #333399;" href="http://www.dealstreetasia.com/?s=Phoenix+Petroleum+Philippines" target="_blank">Phoenix Petroleum Philippines Inc (PNX)</a> has sold its two companies raising up to $59.7 million (P3 billion).
They are Phoenix Petroterminals &amp; Industrial Park Corp (PPIPC), and Chelsea Shipping Corp. The goal is to focus on Phoenix Petroleum&#8217;s core business and use some of the proceeds to pay existing debts.
&#8220;The sale will allow the company to allocate all of its resources to fuel and thus enable to drive its aggressive growth of its core business and distribution of petroleum products nationwide,&#8221; Phoenix Petroleum said in its statement.
It added proceeds shall be used to pay off existing debts which will effectively reduce interest-bearing-debt-to-equity ratio.
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PPIC is a developer of and manages the Phoenix Petroterminals &amp; Industrial Park consisting of about 94 hectares of land spanning the 3 Barangays (villages) Salong, Puting Bato West, and Lumbang Calzada in Calaca, Batangas. It is engaged in the business of acquiring and selling lands, buildings and improvements and the like.
Chelsea Shipping is principally engaged in the maritime transportation of petroleum and other petroleum based products or fuels for industrial, marine, aviation and automotive use, whether wholesale or retail.
Phoenix Petroleum sold all of PPIPC&#8217;s 6 million shares to its affiliate <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Udenna+Development+Corporation" target="_blank">Udenna Development Corporation (UDEVCO)</a> priced at P166.667 apiece amounting to $19.9 million (P1 billion).
For Chelsea Shipping, the listed oil company sold also all 10 million shares to another affiliate <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Chelsea+Shipping+" target="_blank">Chelsea Shipping Group Corp</a> priced at P200 per share for a total of $39.8 million (P2 billion).
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UDEVCO already paid P950 million in cash and will complete the remaining balance of P50 million within six months from execution of the Deed of Sale.
Phoenix Petroleum likewise received in cash 75 per cent of the payment for the Chelsea Shipping shares and the remaining balance of 25 per cent will be paid in cash within six months.
Phoenix Petroleum explained since the core businesses of PPIPC and Chelsea Shipping are different and independent from its core business, there is no material effect in terms of business and operation of Phoenix on the matter of its financial condition.
&#8220;The disposition will relieve as it will free up the consolidated debt to equity ratio of the company,&#8221; Phoenix Petroluem noted. &#8220;Moreover, the proceeds will enable the company to pay off its existing interest bearing debts and thus improve its financial statements.&#8221;
Phoenix Petroleum last traded at P7.15 per share on Friday (February 24).
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Philippines: Phoenix Petroleum disposes two companies for $59.7m

Philippines: Phoenix Petroleum disposes two companies for $59.7m

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Philippines: Phoenix Petroleum disposes two companies for $59.7m

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