THE holding company of Davao City businessman Dennis A. Uy has paid the 1% downpayment for its subscription to common shares in PXP Energy Corp., the listed oil and gas exploration company told the stock exchange on Tuesday.
Dennison Holdings Corp. paid P40.29 million as initial payment for the PXP Energy shares or 1% of the total subscription price of P4.03 billion for the total 340 million shares.
This follows the forging of an amended subscription agreement between the two parties on Dec. 26, 2018, wherein they agreed to reschedule and accelerate the full payment of Dennison’s subscription to not later than March 31, 2019.
The amendment also called for Dennison to pay the downpayment on or before Jan. 7, 2019.
On Tuesday, shares in PXP Energy rose 1.16% to P15.66 each.
The amended subscription agreement follows the announcement of PXP Energy on Oct. 26, 2018 on the subscription agreement forged on the same date between the company chaired by Manuel V. Pangilinan and Dennison.
In the event Dennison fails to pay the entire subscription price by March 31, the entire downpayment will be forfeited in favor of Mr. Pangilinan’s company and the subscription agreement will be terminated at the option of PXP Energy.
After the subscription to the shares and full payment of the subscription price, Dennison will be entitled to at least one seat in the PXP Energy board, as well as to nominate the board’s vice-chairman. Mr. Uy’s firm is also entitled to all other rights of a shareholder.
PXP Energy directly and indirectly owns oil and gas exploration and production assets in the Philippines, and indirectly owns an exploration asset located in offshore Peru.
The amendment came after PXP Energy disclosed on Dec. 21 that Forum (GSEC 101) Ltd., or Forum GSEC, had sent a letter of request on the same date to the Department of Energy (DoE) to lift the force majeure imposed on Service Contract (SC) 72 on Recto Bank.
Forum Energy Ltd., in which PXP Energy holds a direct and indirect interest of 78.98%, has a 70% participating interest in SC 72 located in Northwest Palawan, through its wholly owned subsidiary Forum GSEC.
PXP Energy has a total economic interest of 53.1% in SC 72.
The DoE placed SC 72 under force majeure on March 2, 2015 because the contract area falls within the area that was at that time the subject of an arbitration process with China.
Separately, Mr. Uy’s Phoenix Petroleum Philippines, Inc. told the stock exchange on Tuesday that its stockholders had approved the issuance and offering of up to P5 billion of perpetual preferred shares.
The preferred shares total 5 million at an issue price of P1,000 per share. The issuance is subject to the registration with the Securities and Exchange Commission and listing with the Philippine Stock Exchange.
“[W]e would like to announce that the same board action was approved and assented to by stockholders representing the majority of the Corporation’s Issued and Outstanding capital stock,” the company said.
The disclosure corrected Phoenix’s earlier notice on the same day about an issuance of perpetual preferred shares of up to P10 billion at an issue price of P1,000.
On Tuesday, shares in Phoenix Petroleum were unchanged at P10.80 each. — Victor V. Saulon