Phoenix Petroleum Philippines, Inc. (PNX) recently announced they will put on sale their shipping and industrial park businesses after receiving approval from its Board of Directors (BOD).
Wholly-owned subsidiaries Chelsea Shipping Corp. (CSC) and Phoenix Petroterminals and Industrial Park, Corp. (PPIPC) have been sold to the Udenna Group, the parent and majority stockholder of the company.
The sale will have to go through a third party valuation and has an estimated selling price of P3 to P3.5 billion, which can give PNX a gain of P500 to P700 million.
Earnings from the sales will be used to pay off the debts of the company, which will reduce the Interest-Bearing-Debt-to-Equity ratio from 1.69:1 at the end of last year to 0.92:1 by the end of 2016.
“The sale will significantly allow PNX to allocate all of its resources to fuel its aggressive growth in its core businesses and the distribution of petroleum products nationwide,” Phoenix said in a statement.
As of end June, Phoenix Petroleum has 489 stations nationwide.