PETRONAS Dagangan Berhad (PDB) yesterday announced it has reached an agreement with Phoenix Petroleum Philippines Inc, to divest its 100% interest in PETRONAS Philippines Energy Inc. (PEPI) and jointly divest its 40% interest in Duta Inc. (Duta), subject to approval by the Philippine Competition Commission (PCC). The divestment of PEPI and Duta will mark the exit of PDB from the LPG business in the Philippines.
PDB Chairman, Md Arif Mahmood said, “Our exit from the LPG business in the Philippines is part of the company’s portfolio review exercise.”
The President and CEO of Phoenix, Dennis A Uy, said, “We have been actively looking to expand our business portfolio in recent years, particularly in the LPG space, as part of our goal of becoming one of the leading oil and gas players in the Philippines. This acquisition helps us achieve just that.” He added, “PEPI has strong presence in Visayas and Mindanao – regions that Phoenix is very familiar and experienced in serving, given our own roots. This will put us in a good stead to grow the business further.”
Both parties have entered into a Memorandum of Understanding and the share purchase agreements will be entered once PCC formally accepts the notification forms submitted for its review on the transaction. Completion of the transaction is expected by Q4 2017.”
PEPI was incorporated in 1995 and undertakes LPG marketing in the Philippines while Duta Inc. is a land holding company jointly owned with local partners.