By Arra B. Francia, Reporter
PHOENIX PETROLEUM Philippines, Inc. has finalized its purchase of FamilyMart convenience stores in the country, allowing Davao-based businessman Dennis A. Uy’s company to take over the retail chain previously owned by the Ayalas and Tantocos.
The listed oil company told the stock exchange on Thursday it has concluded the acquisition of 100% of shares in Philippine FamilyMart CVS, Inc. (PFM).
“A new exclusive area franchise agreement of the Family Mart branch of convenience store in the Philippines was granted to Philippine FamilyMart CVS under management of the company,” Phoenix Petroleum said.
PFM was formed by SIAL CVS Retailers, Inc., a 50-50 partnership between Ayala Land, Inc.’s wholly owned subsidiary ALI Capital Corp. and SSI Group, Inc., as well as Japanese firms FamilyMart Co. Ltd. and Itochu Corp.
SIAL CVS held 60% of PFM, while FamilyMart Co. Ltd. and Itochu owned 37.6% and 2.4%, respectively.
Phoenix Petroleum had entered into a memorandum of agreement with the group last Oct. 30.
The Philippine Competition Commission on Jan. 3 cleared the acquisition to ensure the transaction will not result to a substantial lessening of competition.
“This is positive for the company. This will follow the business model of different gas stations of having a store beside its gas station. With the increasing number of Phoenix Petroleum in the country, this will be added revenue on their part and their income as well,” Diversified Securities, Inc. equity trader Aniceto K. Pangan said in a phone interview yesterday.
With 68 FamilyMart branches in Luzon, Phoenix Petroleum said the convenience stores will be able to complete its fuel retail business, now with 518 gas stations nationwide.
Phoenix Petroleum Chief Operating Officer Henry Albert R. Fadullon, meanwhile, said last year the focus would be to put up FamilyMart stores in central business districts to capture the needs of employees of business process outsourcing firms.
The executive also noted they would like FamilyMart to provide more food options, considering its ready-to-eat meals are part of its appeal in its origin country Japan.
Phoenix Petroleum saw a 14% decline in its attributable profit during the first three quarters of 2017 to P712 million, despite a 47% jump in revenues to P32.6 billion during the same period.
Shares in Phoenix Petroleum were down by 46 centavos or 3.59% to close at P12.34 apiece at the Philippine Stock Exchange on Thursday. ALI shares, meanwhile, lost P1.30 or 2.85% to P44.35 each, as SSI stocks ended flat at P3.10 each.