PXP Energy Corp. has agreed to swap 430,243,903 of its common shares in exchange for 24,125,383 Tidemark Holdings Ltd. shares in Forum Energy Limited.
PXP Energy in Monday told the Philippine Stock Exchange (PSE) its interest in Forum Energy will increase from 77.88 percent to 97.88 percent and interest in service contract (SC) 72 similarly rise from 54.5 percent to 68.5 percent.
Tidemark will own 18 percent of the total issued and outstanding capital stock of PXP Energy.
The aggregate value of shares to be issued and exchanged between PXP Energy and Tidemark’s Forum Energy are valued at P1.56 billion.
According to PXP Energy, the share swap ratio is approximately 17.8337 PXP shares for every one Tidemark Forum Energy share based on a valuation report and confirmed by a fairness opinion issued by PwC Philippines – Isla Lipana & Co.
The company said the proposed share swap and suggested increase in the number of board seats will be submitted for shareholder approval in a meeting scheduled next month.
Tidemark is a wholly-owned subsidiary of PSE-listed Atok Big Wedge Co. Inc. wha are both shareholders of Forum Energy.
Forum Energy, through wholly-owned subsidiary Forum Ltd., is the designated operator of SC 72 with a 70 percent participating interest.
PXP Energy earlier said it will coordinate with the government on the resumption of activities at the stalled SC 72 and 75 due to a force majeure since April 2022. Both SC 72 and SC 75 are inaccessible due to the continuing territorial dispute with China.
PXP said it will continue to pursue exploration work with respect to its other projects in the Philippines, including SC 40 in Northern Cebu and SC 74 also located in Northwest Palawan.
