Phoenix Petroleum Philippines has raised P807 million from its sale of treasury shares to reduce its existing debt.
The company disclosed that it sold 70,193,400 treasury sales at P11.50 per share,
“The selling price of P11.50 per share is higher than the closing price of P11.42 per share as of Oct. 27, 2017, and slightly lower than the 30‐day VWAP (volume weighted average price) of P11.657 per share,” it said.
This gave the company a way to raise P807.22 million from the sale.
Proceeds of the sale will be used to retire existing debt “that has increased due to the acquisition and investments made by the company since the start of the year.”
The treasury shares were accumulated through a buyback program of the company.
The buyback system began in May 2016 initially with around P250 million worth of shares as was later increased to P750 million.
In May 2017, Phoenix ventured to the liquefied petroleum gas (LPG) retailing business after it acquired the local unit of Malaysian oil and gas company Petronas Dagangan Berhad (PDB), Petronas Energy Philippines Inc. (PEPI)
The acquisition of Petronas LPG amounted to $126.1 million or around P6.27 billion.
Phoenix also recently entered the convenience retail market with the takeover of the local operations of FamilyMart in the country.
The company has signed a memorandum of agreement with SIAL CVS Retailers Inc., FamilyMart Co. Ltd. and Itochu Corp for the buyout.