Phoenix Petroleum to form JV with Thailand’s Tipco Asphalt
PHOENIX Petroleum Philippines, Inc. is teaming up with a Thailand-based asphalt maker and a local company to distribute bitumen products in the country, as it seeks to take advantage of the government’s aggressive infrastructure program.
In a disclosure to the stock exchange on Tuesday, the company led by Davao-based businessman Dennis A. Uy said its board of directors approved the execution of a joint venture agreement with Tipco Asphalt Public Company, Limited, and Carlito B. Castrillo for PhilAsphalt Development Corp.
The joint venture company will market and distribute bitumen and bitumen-related products in the country. Refined bitumen is primarily used as asphalt cement for road construction.
Describing bitumen as one of the by-products of crude oil refining, Phoenix Petroleum said the deal effectively allows it to expand its portfolio of petroleum products.
“Phoenix’s strategic focus will be on creating growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals,” the listed company said.
According to its Web site, Tipco Asphalt “manufactures and distributes asphalt products servicing road construction, maintenance and paving industries, essential for transportation.” It has manufacturing facilities and asphalt terminals in every region in Thailand, and operates a refinery in Kemaman, Malaysia.
After the execution of the joint venture deal, Phoenix Petroleum said the parties will apply for incorporation and registration of the joint venture company within 30 days.
The total authorized capital stock of the joint venture company is estimated at P275 million.
Phoenix Petroleum and Tipco Asphalt will each own 40% of the joint venture, with PhilAsphalt’s Mr. Castrillo will own 20%.
A precedent condition for the completion of the deal is the incorporation of PhilAsphalt in 30 days and the assignment of Mr. Castrillo’s shares to PhilAsphalt.
The new company will also lease a parcel of land from Calaca Industrial and Seaport Park for the construction of a terminal.
On Tuesday, shares in Phoenix slipped 0.49% to close at P12.28 each. — Victor V. Saulon
