Local oil player Phoenix Petroleum Philippines Inc. divested its stakes in its Singapore-based trading arm, PNX Petroleum Singapore Pte. Ltd. (PNX SG).
In a disclosure to the Philippine Stock Exchange yesterday, the company said the divestment via share buyback, which was approved by its board last Friday, is “pursuant to the Liability Management Exercise in order to generate additional working capital to support core business operations.”
Raymond Zorrilla, Phoenix Petroleum senior vice president for external affairs, said in a separate statement the company divested 85 percent stake from PNX SG through a share buyback by the latter.
“The said transaction is to be settled in cash as agreed by both parties. Furthermore, these funds will be used to shore up (Phoenix Petroleum’s) working capital needs, particularly to purchase inventory for its B2B (business-to-business) customers,” Zorrilla added, without giving details on the amount involved.
Based on Phoenix Petroleum’s website, PNX SG’s trading office was opened in November 2017 to expand its business in the region. Prior to this, PNX SG trades and supplies a wide range of refined products to serve customers from retailers, ship-owners, mining to transport companies and airlines, among others.
