Phoenix Petroleum Philippines Inc. on Wednesday said it will raise as much as $19,210,000 or P1.09 billion from the divestment of its stake in PNX Petroleum Singapore Pte. Ltd. (PNX SG).
Phoenix Petroleum first reported of the divestment on Monday of 85 percent stake in PNX SG through a share buyback.
The company told the Philippine Stock Exchange the valuation was made under a net asset value approach which estimated the value of equity as the fair value of a company’s assets less the fair value of its liabilities adjusted for any unrecorded assets and liabilities in the balance sheet.
Prior to the divestment, Phoenix Petroleum said it owns 85 percent in PNX SG and the remaining 15 percent by Libra Investments Pte Ltd., a company based in Singapore.
Phoenix Petroleum said the amount raised will be used as working capital for the purchase of inventory for its business-to-business customers.
“The added working capital to be raised by the sale shall help push the recovery efforts of the local business and together with its liability management exercise and any possible equity infusion, the same levels of revenue are expected to be attained in the two to three years along with an increase in margins,” the company further said.
