Phoenix Petroleum Philippines to buy shipping firm

Phoenix Petroleum Philippines Inc. announced that it will acquire Chelsea Shipping Corp. through a PHP1.4-billion (US$33 million) share-swap. Phoenix Petroleum said the acquisition will ensure efficient supply of oil for its gasoline distribution business. “The strategic acquisition of Chelsea is consistent with our goals of sustaining our competitiveness in the industry and fostering the long term success of our company,” said Dennis Uy, Phoenix Petroleum president and chief executive. Under the agreement, Phoenix Petroleum will issue 171.25 million common shares at PHP8.2931(US$0.19) per share to Chelsea from its authorized but unissued capital. Chelsea is owned by Davao-based Udenna Management & Resources Corp. At the end of March, Chelsea owned a 3.38% stake amounting to 16.562 million shares in Phoenix Petroleum. The shipping company has a fleet of 10 vessels, two of which serve the trade route of Taiwan to the Philippines and has a 19,561 gross registered tonnage, making it one of the top five major tanker owners in the Philippines. (July 10, 2012)