Phoenix Petroleum shareholders approve Chelsea shipping deal
Shareholders of Phoenix Petroleum Philippines Inc. (Phoenix) [PNX] have approved the acquisition of Chelsea Shipping Corp. (Chelsea) and the issuance of P180 million ($4.3 million) debt papers, the company said, Ship & Bunker reports.
Phoenix said it will pay for 90 percent of the acquisition through share swap and 10 percent in cash to cover for payment of taxes. The purchase price is based on a 30-day volume weight average price from May 24 to July 5, 2012, or P8.2931 ($0. 199834) per share.
The new debt will help finance the deal, raise long-term capital and pay for capital expenditures for the oil company.
The acquisition of Chelsea, which is one of the top five petroleum tanker owners in the Philippines with a total fleet size of 19,561 GRT, was first announced in July.
"The acquisition of Chelsea Shipping will ensure control of product supply and is expected to result in savings from financial and operational efficiencies," Phoenix said in a statement.
The company, which says it was the 84th largest corporation in the country as of 2010, offers trading, terminaling, and hauling services, serving retail and industrial customers.
Phoenix's revenues have risen sharply in recent years, according to the company's financial reports, from P4.6 billion ($97 million) in 2008 to P27.5 billion ($627 million) in 2011, and it had profits of P511 million ($12.6 million) last year.
Chelsea is a wholly-owned subsidiary of Udenna Management & Resources Corp. and is the owner of Bunkers Manila Inc., Michael Inc., PNX-Chelsea Shipping Corp., and Chelsea Ship Management and Marine Services Corp., all of which are Philippine companies.
