PETRONAS Dagangan Bhd, via its wholly-owned subsidiary PDB (Netherlands) B.V. (PDBN), yesterday signed Share Purchase Agreements with P-H-O-E-N-I-X Petroleum Philippines Inc. (Phoenix Petroleum) for the sale of PDB’s LPG business in the Philippines.
Through these Share Purchase Agreements, Phoenix Petroleum will acquire PETRONAS Energy Philippines, Inc. (PEPI) and its affiliate, Duta Inc. (Duta) for a total cash consideration of US$126.1 million (about RM541.5 million) subject to adjustment at completion.
From the total cash consideration, PDBN will receive US$124.0 million (about RM532.5 million) for its 100% shareholding in PEPI and 40% shareholding in Duta.
The Share Purchase Agreements were signed by the Managing Director of PDBN, Datuk Mohd Ibrahimnuddin Mohd Yunus and the President and CEO of Phoenix Petroleum Dennis A. Uy.
Both parties had previously entered into a Memorandum of Understanding on 24 May 2017 to submit their applications to the Philippine Competition Commission (PCC) for approval to complete the transactions.
The transactions are expected to be completed in Q3 2017. Upon completion, PEPI will cease to be an indirect wholly-owned subsidiary and Duta will cease to be an indirect associated company of PDB respectively.
PEPI was incorporated in 1995 and undertakes LPG marketing in the Philippines, while Duta is a land holding company jointly owned with local partners.