Phoenix Petroleum acquires Chelsea Shipping Corp.
Oil firm Phoenix Petroleum Philippines, Inc. on Monday announced its acquisition of domestic shipping company Chelsea Shipping Corp. through a share-for-share swap agreement, GMA News reports.
"The agreement principally contains the acquisition by the company of 6,312,500 common shares of the Chelsea representing 100 percent of its outstanding capital stock in exchange for 171,250,799 common shares of the company or equivalent to 30 shares for every 1 Chelsea share," Phoenix said in a disclosure.
According to Phoenix, the purchase price was based on the 30-day Volume Weight Average Price from May 24 to July 5, 2012 at P8.2931 per share and used an Independent Fairness Opinion Assessment submitted by Penta Capital Investment Corporation as basis.
Payment mode will be 90 percent share swap and 10 percent cash to cover for the payment of taxes.
Phoenix said its acquisition of the shipping company ensures its control of its supply of petroleum products and minimizes the risk of supply disruptions due to the scarcity of tanker vessels.
“The strategic acquisition of Chelsea Shipping is consistent with our goals of sustaining our competitiveness in the industry and fostering the long-term success of our company,” Phoenix Petroleum president and CEO Dennis Uy said in an earlier statement.
One of the country’s top petroleum tanker owners, Chelsea currently has 10 vessels in its fleet, two of which serve the regional Taiwan-Philippines trade route.
It serves several companies including Phoenix Petroleum, Cebu Pacific Air and the National Power Corporation, and serves the bunkering requirements of U.S. Navy vessels calling at Subic Bay.
