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Studios’ foreign sales turn box-office Kryptonite into wins

THE DUDS just keep coming this summer in North America, from The Mummy to Alien: Covenant to Pirates of the Caribbean: Dead Men Tell No Tales. The season has been what critics politely call lackluster for Hollywood studios — but don’t expect them to stop churning out more bombs.

That’s because as badly as so many franchise films and reboots have done in the world’s biggest cinema market, they’ve racked up solid ticket sales elsewhere. Theater-goers in America thought Paramount Pictures’ fifth Transformers was pretty much a yawner, but in China they liked it. And No. 6 is already in the works.

“Look at the casualties just this summer,” said Paul Dergarabedian, a Los Angeles-based analyst for ComScore, Inc. “If they only had North America, it would be a monumental disaster for the studios.”

For now at least, the rest of the world — China in particular — is supporting Hollywood’s love affair with series, sequels, and rehashes like The Mummy, Universal Pictures’ new take on a story that’s been told dozens of times. The risk is that sequel fatigue will set in overseas too. Chinese moviegoers are becoming more choosy, and the fastest-growing film market is slowing down. That’s a challenge for studios such as Walt Disney Co. and Time Warner, Inc.’s Warner Bros., which plan and schedule movies years in advance.

Jonathan Papish, an analyst for China Film Insider, described as a “disaster” the $250 million that Transformers: The Last Knight is projected to record in the world’s most-populous country. The reason: the previous version from Viacom, Inc.’s film division pulled in 17% more, “a worrisome sign for both Paramount and other Hollywood studios who have become far too complacent thinking that Chinese audiences will swallow whatever garbage they shove down their throats.”

This Transformers opening in China, at least, was about 30% bigger than the opening for the previous one, according to Box Office Mojo.

Not every sequel or franchise entry has fallen flat in North America, of course. Wonder Woman, Warner Bros.’ fourth episode in the DC Extended Universe series, has taken in $346 million domestically and is one of the year’s top films. Disney’s Guardians of the Galaxy Vol. 2 topped the box office for two weeks and has taken in $383 million domestically.

And there are some big-hitters coming. Sony Corp.’s Spider-Man: Homecoming is expected to take in $301 million in North America after its release this weekend, according to BoxOfficePro.com. War for Planet of the Apes, out July 14 from 21st Century Fox, Inc., could grab $165 million.

But the second-quarter domestic box office ended down 3.6% from a year ago at $2.7 billion, Barton Crockett, an analyst at FBR & Co., said in a note. He blamed disappointing sequels; even with a better-than-expected Wonder Woman, he predicts a 15% decline for the third quarter.

Chinese box-office sales fell in June, as local movies as well as Hollywood imports failed to meet expectations. This month, PricewaterhouseCoopers LLC pushed back its forecast for China’s movie market to overtake the US to 2021 from 2017.

This weekend, Universal’s Despicable Me 3 will test the Chinese market, after opening in first place in 44 out of 46 countries, according to data from the film division of Comcast Corp. A new installment in another Universal series, The Fate of the Furious, enjoyed strong demand in China, taking in $393 million there earlier this year.

Even with big budget films flopping at home, movies can earn money for years to come from digital downloads and sales to Netflix, Inc. and other streaming sites and cable-television channels. The latest — and last — Pirates of the Caribbean may have missed expectations when it came out May 26, but it could end up generating a net profit of $219 million, according to an estimate from Wade Holden, analyst with S&P Global Market Intelligence.

That hasn’t stopped some analysts from complaining that studios have focused too much on making big-budget features.

“There is an over reliance on sequels,” said Richard Greenfield, a media and technology analyst at BTIG LLC. The major studios “are so worried about investing in an unknown property that they are all just relying on sequels and hoping that sequels will save them.”

While Disney has had tremendous success, Greenfield said it’s not bulletproof. “The danger is that investors are essentially assuming that a movie like Star Wars will be successful forever.”

As much as any studio, Disney has tied its future to sequels and remakes. The company’s 2017 schedule includes eight films, of which six fit that profile, according to Box Office Mojo.

Disney said its strategy sets it apart from the competition — in 2016 its film business had its most profitable year ever. Other studios trying to ape it have had less success. Sony, for example, tried and failed to refresh its 1984 hit Ghostbusters last year in the hope that it could spawn a new series.

In any event, many future slates are laden with new installments of existing worlds of characters. 21st Century Fox and Sony, which license Marvel characters, are planning more X-Men and Spider-Man chapters.

Disney has laid out several years worth of Marvel superhero offerings and at least a six-picture series of Star Wars movies. Meanwhile, the company is revisiting Mary Poppins and Mulan.

“Studios are rushing these sequels,” said Jeff Bock, senior analyst at Exhibitor Relations Co. “If you want to get the domestic audience back, you’ve got to do something a little outside the box.” — Bloomberg

After nearly 30 years, an OPM legend returns

CELESTE LEGASPI, the Original Pilipino Music (OPM) icon, is back for a solo concert slated on Aug. 5 at the Theatre in Solaire Resort and Casino in Parañaque City.

“I wouldn’t have agreed to do this if not for my father, (National Artist for Visual Arts) Cesar Legaspi’s centennial,” Ms. Legaspi told reporters during a press conference on July 4.

She added that it’s been a long time since she last did a solo concert — the last, one she reckoned, was before the Musical Theatre Philippines’ (Musicat) production of Katy in 1988.

“I feel very excited and challenged… it’s been so long since my last concert [but I] take comfort in the fact that my songs are excellent material,” she said.

The Filipina songstress was the voice behind hit songs of the 1970s and ’80s such as “Tuliro,” “Sabado,” “Mamang Sorbetero,” and “Saranggola ni Pepe,” among many others.

Her Aug. 5 concert, entitled simply Celeste, also serves as a tribute to the works of her father, National Artist for Visual Arts Cesar Legaspi, with Ms. Legaspi showcasing his Gadgets series, first painted in 1947.

“My father did four Gadgets and it would be beautiful for the audience to see how the work evolved,” she said, adding they’re planning to present the works of Mr. Legaspi in a “really stunning way.”

“[The concert] will be a trip down memory lane,” she said of her set list which will not include contemporary songs.

Ms. Legaspi admitted to being “apprehensive” about doing the concert because she fears the younger audience members will not be able to recognize her songs.

Despite her apprehensions, Ms. Legaspi, who prides herself on pushing for excellence in all that she does, is looking forward to the one-night show, and so is Solaire Entertainment director, Audie Gemora.

“It makes perfect sense to bring the original diva, Celeste Legapi [to Solaire],” Mr. Gemora said in a press release, noting that crooner Basil Valdez’s successful concerts in April and May showed there is an audience for the Filipino music icons.

Ms. Legaspi will be joined by composer Ryan Cayabyab as the musical director while the Company and acapella group Baihana will be performing alongside her.

Celeste will be held on Aug. 5, 8 p.m., at the Theatre in Solaire.

For tickets, visit www.ticketworld.com or call 891-9999. — Zsarlene B. Chua

Music streaming keeps booming in US

NEW YORK — The boom in streaming shows no signs of slowing down in the United States, with music consumption soaring nearly 10% so far this year, an analytical firm said Wednesday.

BuzzAngle Music, in a report for the first half of 2017, said listeners in the world’s biggest music market streamed an average of 10.8 billion songs each week, after never crossing the 10 billion point a year earlier.

Audio streams were up 58.5% from the first half of 2017. In welcome news for the industry, a growing number of listeners paid for services such as Spotify, Apple Music, and Tidal, with subscriptions now accounting for 78.6% of audio streams.

Overall music consumption — which includes streams, downloads and physical sales — grew by 9.9% from the same period last year. That growth outpaced the 6.5% growth charted for the first half of 2016.

The music industry has enjoyed several years of fast-growing revenue thanks to streaming — which brings listeners unlimited, on-demand choices online — after two decades of decline or stagnation.

But while streaming’s growth has boosted the bottom line for now, two other major formats are facing decline. Digital downloads on platforms such as iTunes tumbled nearly 25% in the first half of 2017, while CD sales slipped 3.9%.

Sales of vinyl — which has seen a rebirth thanks to hardcore music fans — jumped by more than 20%, although the historic format remains a sliver of the industry.

English songwriter Ed Sheeran’s Divide has been the year’s top-selling album to date, followed closely by two hip-hop works that benefited strongly from streaming — Kendrick Lamar’s DAMN. and Drake’s More Life. — AFP

PSE secures majority ownership in PDS

By Arra B. Francia

THE Philippine Stock Exchange, Inc. (PSE) on Thursday inked a deal to purchase Whistler Technologies Services, Inc.’s 8% stake in PDS Holdings Corp. (PDSHC), allowing the PSE to raise its interest in the latter to over 50%.

In a disclosure issued on Thursday, the PSE said it agreed to buy Whistler Technologies’ 500,000 common shares in PDSHC, priced at P320 apiece, for P160 million.

Whistler Technologies’ stake is equivalent to 8% of PDSHC’s total issued and outstanding stock.

“With the signing of the aforementioned Share Purchase Agreement, the Company has agreed to acquire a total of 31.8% incremental equity interest in PDSHC. In addition to its existing 20.98% interest, the Company has now a total of 52.78% majority ownership interest in PDSHC,” the PSE said.

The PSE will make a payment of P147.02 million to Whistler Technologies on closing, while the remaining P12.98 million will be held in escrow. The price is based on PDSHC’s adjusted equity value of P2 billion.

However, the deal is still subject to certain closing conditions, such as the Securities and Exchange Commission’s granting of exemptive relief to the PSE for owning more than 20% of an exchange, as well as the approval of the Philippine Competition Commission.

“This transaction is envisioned to facilitate further growth in the local capital markets by introducing efficiencies in the trading and back office systems of both the equities and fixed income markets, among others. It is aimed at creating a better environment for the introduction of more products and services for the various market stakeholders, as well as the implementation of improvements in risk management processes,” the PSE said.

In June, the PSE also signed an agreement with the Bankers Association of the Philippines and its affiliate companies to buy their cumulative 23.8% stake (consisting of 1,488,902 common shares of stock) in PDSHC for P476.45 million.

PDSHC owns the Philippine Dealing & Exchange Corp., the Philippine Securities Settlement Corp. and the Philippine Depository & Trust Corp., the country’s sole depository for equities and fixed-income securities.

The PSE has been holding negotiations to buy out other PDSHC shareholders as early as 2013 in a bid to merge the two capital markets.

In March, the PSE stated that the goal was to own up to 67% of PDSHC. Other stakeholders of the fixed-income bourse include The Singapore Exchange Ltd. with 20%, San Miguel Corp. with 4%, the Philippine American Life and General Insurance Co. at 4%, among others.

The SEC had earlier rejected the PSE’s application for exemptive relieve in March 2016, citing the bourse’s failure to present “clear and convincing evidence” that the acquisition will not negatively impact PDSHC’s capacity to operate in the public’s interest, among others.

This led to the PSE’s failure to proceed with share purchase agreements with firms owning 40.06% of PDSHC at the time, including BAP and Whistler Technologies.

In an interview with reporters last June 14, SEC Chair Teresita J. Herbosa said they rejected the application in 2016 because PSE was not able to lay out the specific plans on the merger, but noted that the bourse already met with the PCC and corporate regulator, when sought for details.

Annette Bening to head Venice film festival jury

ROME — US actress Annette Bening will preside the jury for this year’s Venice International Film Festival, organizers said Wednesday.

“It was time to break with a long list of male presidents and invite a brilliant, talented, and inspiring woman to chair our international competition jury,” the prestigious festival’s artistic director, Alberto Barbera, said in a statement.

“A sophisticated and instinctive actress, able to portray complex shadings of character, Annette Bening brings to her roles an understatement, a warmth and a natural elegance that makes watching her films a wonderful and ever-enriching experience,” enthused Barbera of the American Beauty star and two-time Golden Globe winner.

In a statement, Bening, who will be the first woman to preside Venice since French actress Catherine Deneuve in 2006, said she was “honored to be asked to serve as the president of the jury for this year’s event.

“I look forward to seeing the movies and working with my fellow jury members to celebrate the best of this year’s cinema from all over the world.”

Bening won her Globes in 2005 for Adorable Julia and in 2011 for The Kids Are All Right while she has received four Oscar nominations, including for best actress in 2000 for American Beauty.

Her predecessor presiding the Venice jury was British director Sam Mendes, who landed an Oscar for American Beauty.

ADRIEN BRODY HONORED
Meanwhile, US actor Adrien Brody will receive the prestigious Leopard Club Award when the Locarno Film Festival kicks off in Switzerland next month, organizers said Tuesday.

The 44-year-old, best known for his haunting role in the 2002 Oscar-winning Holocaust film The Pianist, will receive the award on Aug. 4 at the festival on the picturesque shores of Lake Maggiore.

The prize is awarded to actors “whose work has left a mark on the collective imagination” and has previously gone to stars including Faye Dunaway, Mia Farrow and Andy Garcia.

“Brody gained a lasting place in the collective imagination of the movie-going public when he played composer Wladyslaw Szpilman in The Pianist,” directed by Roman Polanski, festival organizers said.

The actor, who won an Oscar for that role, “has since demonstrated his status as one of the most versatile of actors, appreciated by filmmakers in Hollywood and beyond,” they added.

Brody started his film career in 1989 in the Francis Ford Coppola-directed segment of New York Stories. He has since worked with many of the world’s top directors, including Steven Soderbergh, Oliver Stone, Ken Loach, Spike Lee, Wes Anderson, and Woody Allen.

The 70th edition of the Locarno Film Festival will run from Aug. 2-12. — AFP

DoubleDragon prices retail bond offer

DOUBLEDRAGON Properties Corp. on Thursday said it has finalized the interest rate for its latest sale of peso-denominated debt, which has seen strong demand.

In a statement, the property firm said it will pay a coupon rate of 6.0952% for its seven-year fixed rate retail bonds, which will have a base size of P6.5 billion with an oversubscription option of P3.2 billion.

“Due to strong demand for the Retail Bonds, the coupon rate was set at the bottom-end of the pricing range,” DoubleDragon

This is the second tranche of the P15-billion retail bonds under shelf registration approved by the Securities and Exchange Commission (SEC) in 2016. The first tranche amounting to P5.3 billion was issued last December.

Upon receiving the permit to sell from the Securities and Exchange Commission, DoubleDragon will start offering the bonds from July 7-13. The retail bonds are scheduled to be issued on July 21.

DoubleDragon has tapped BDO Capital & Investment Corp., RCBC Capital Corp., Maybank ATR Kim Eng Capital Partners, Inc., and BPI Capital Corp. as the joint lead underwriters of the offer.

The bond offer was assigned a PRS Aa rating by Philippine Rating Services Corp., the second highest rating category in the local debt watcher’s existing credit rating scale. This indicates that the obligations are of high quality and are subject to very low credit risk.

Philratings further assigned a positive outlook on the DoubleDragon’s credit rating for the debt offer, which signifies that the present rating has a potential to be upgraded in the next 12 months.

DoubleDragon has earmarked the proceeds from the offer for its expansion, which includes the development of community mall chain CityMalls, DD Meridian Park in Pasay City and Jollibee Tower in Ortigas Center. The projects would allow the developer’s leasable portfolio to reach a total of one million square meter by 2020.

In the next three months alone, the company said it will be opening 10 more CityMalls across the country, on track to have at least 30 malls operational by yearend.

DoubleDragon posted a net income of P165.7 million in the first three months of 2017, soaring 280% year on year on the back of consolidated revenues of P649 million. The company attributed the growth to real estate sales which jumped 66% to P400 million, as well as the 129% rise in rental income to P104.5 million.

Shares in DoubleDragon dropped by 45 centavos or 0.95% to close Thursday with P46.85 each. — Arra B. Francia

Lady Gaga embraces Ed Sheeran after Twitter abuse

NEW YORK — Even A-list celebrities can be hurt by the venom on Twitter.

Lady Gaga has rallied to support Ed Sheeran after the English songwriter revealed he is avoiding Twitter due to abusive comments — some from Gaga’s “Little Monster” fan base.

“I wish all people on the Internet would be positive and loving and a part of creating an online community that is kind and empowering, not hateful and mean,” Lady Gaga wrote late Tuesday on Instagram as she posted a picture of herself with Sheeran.

“No reason to tear down an artist simply because they are on top,” she wrote.

Sheeran — whose Divide is the top-selling album so far this year in the United States — said earlier in the week that he was no longer reading Twitter. His account in recent weeks consists mostly of tour photos reposted from his Instagram feed.

“I go on it and there’s nothing but people saying mean things. Twitter’s a platform for that,” Sheeran told the British tabloid The Sun.

“One comment ruins your day. But that’s why I’ve come off it,” he said.

The ginger-bearded 26-year-old insisted he had not targeted Gaga, whose die-hard fans took him to task over a recent interview.

Speaking on Apple Music’s Beats 1 radio, Sheeran said he was open to outside advice as he did not want to feel “invincible” after his successes.

“I do not want to do the Super Bowl years later, after my biggest success, just to prove I’m still relevant,” he said.

Gaga put on a widely praised show in February during halftime of the latest Super Bowl, the title match of American football which is the top-watched event each year in the United States.

Gaga has been outspoken in fighting bullying, in part through her Born This Way Foundation.

Cyberbullying has drawn growing attention amid the rise of social media, with critics accusing President Donald Trump of crossing the line with recent posts. — AFP

Resorts World Manila aims to win back trust, expand after fatal fire

RESORTS WORLD Manila, the Philippine casino where 38 people died after an arson attack last month, aims to complete a new gaming zone this year as it seeks to win back customers and rebuild its brand.

“We’re spending a lot of time enhancing the overall security of the place and learning about what had happened,” Kingson Sian, 55, Chief Executive Officer at Travellers International Hotel Group, Inc., which owns and operates the integrated casino resort, said in an interview on July 3. “We obviously have to gain back the trust of our guests and the public.”

Travellers, a venture of billionaires Andrew Tan from the Philippines and Lim Kok Thay of Malaysia, is facing its toughest challenge since opening the integrated gaming facility eight years ago. On June 2, a former patron burned gaming tables with fumes asphyxiating dozens before he killed himself. The company is under probe for the security breach that led to the attack and its gaming license was suspended for almost a month.

Closure of Resorts World Manila’s casino facility cost the company about P60 million ($1.2 million) a day in lost gaming revenue, Mr. Sian said, with customers to the complex, which has a shopping mall, cinemas and restaurants, dropping by as many as 10,000 a day to 20,000. Hotel occupancy plunged to 40% from 90% and is now at about 60%. When the casino reopened on June 29, traffic was half of that before the attack.

“While many of its mass-based patrons are loyal and will probably come back, the stigma from this tragedy is a setback for further growth,” said Manny Cruz, an analyst at Asiasec Securities. “Travellers must take this opportunity to improve its image, recalibrate its business and think of its future.”

Mr. Sian, who met with the families of those killed and attended victims’ wakes, said Travellers will hold off cutting jobs as it speeds up completion of a new gaming area. The company is compensating families and will pay for the education of victims’ children.

Travellers is trying to woo customers with cheaper movie tickets, food discounts and free parking. Its security team has been replaced, an overseas group hired as a consultant and, within a month, it plans to unveil an enhanced “containment style” defense system, Sian said.

Getting back to business is crucial as the venture of Mr. Tan’s Alliance Global Group, Inc. and Mr. Lim’s Genting Hong Kong Ltd. aims to open by year end a casino floor larger than the one destroyed on June 2, six months earlier than scheduled, while the damaged area will be converted into a retail zone, Mr. Sian said.

Travellers’ earnings have fallen in seven of the previous nine quarters, while those of its rivals including Bloomberry Resorts Corp. and Melco Resorts & Entertainment Philippines Corp. have been steadily growing as they attracted more foreign players and high rollers. Competition among Manila casinos is intensifying as Universal Entertainment Corp., the casino venture of Japanese tycoon Kazuo Okada, ramps up operations.

Travellers holds one of four integrated casino licenses issued by the Philippines government in 2008 to develop Manila’s Entertainment City and grab a bigger share of Asia’s rising gambling revenue. The company has spent $1.2 billion since opening Resorts World Manila in 2009 and is scheduled to operate a $1 billion complex in Manila’s gaming hub by early 2021.

“It’s one of the sad events in our history but, nevertheless, we believe in the long term potential of the industry,” Mr. Sian said. “We believe in the future of both tourism and gaming. We have a long view and we are committed to this.” — Bloomberg

Rappers Azalea, Banks put aside bitter feud

NEW YORK — Iggy Azalea and Azealia Banks — two leading women in hip-hop who were embroiled in a bitter, racially tinged row — have patched up with plans in the works for a collaboration.

Azalea unveiled over social media that Banks will appear on a track of Digital Distortion, the 27-year-old Australian’s upcoming second album, and said she wanted to move on from the feud. “I don’t expect you guys to understand why I would collaborate with someone who has publicly said they hope I die,” Azalea wrote on Twitter Tuesday, saying she wanted to “turn YEARS worth of negativity into a positive interaction.”

“Also I think females in rap need to really be unified to prosper. We need more collaborations to happen,” she tweeted.

Banks was a vociferous critic when Azalea found overwhelming commercial success with her debut album, The New Classic, in 2014. Azalea caused a stir by rapping in the dialect of an African American from the southern United States, despite being white and speaking in an Australian accent off-stage. Banks, who is African American, accused Azalea of profiting through racial appropriation in a series of Twitter posts that became increasingly heated. — AFP

Ayala unit completes acquisition of German auto parts supplier

A UNIT of Ayala Corp. (AC) has completed the acquisition of a 94.9% stake in a German automotive parts supplier for €26.8 million.

In a disclosure to the stock exchange on Thursday, the listed conglomerate said its wholly owned subsidiary AC Industrial Technology Holdings, Inc. (AC Industrials) bought a total of 237,250 shares from MT Misslbeck Technologies GmbH (MT). The transaction was coursed through AC Industrials (Singapore) Pte. Ltd.

Ayala said the payment will be made in cash, and also involves the assumption of debt and other liabilities.

MT is an automotive supplier of models, tools, and plastic parts for automotive original equipment manufacturers and has production plants in Ingolstadt, Germany. The company also designs and creates models of entire car parts or parts of a car, produces injection molds for metal and plastic car parts, as well as automotive plastic parts which are produced for prototyping and serial production.

“This investment forms part of AC Industrials’ strategy to increase its competence and capabilities in the automotive value chain and will complement AC Industrials’ existing businesses in manufacturing services and vehicle distribution and dealerships,” the country’s oldest conglomerate said.

Last month, AC Industrials officially opened the first European motorcycle manufacturing factory in the Philippines through a joint venture with KTM Asia. The P500-milllion factory can produce 60,000 KTM motorcycle units annually at full shift.

This forms part of the Ayala group’s bid to tap manufacturing as one of the company’s main drivers of growth.

AC Industrials posted a 22% growth in net income to P332 million during the first quarter of 2017, following a 37% year-on-year increase in revenues to P7.6 billion in the same period. The firm attributed the increase to the performance of both its electronics manufacturing and automotive retail business.

Meanwhile, AC’s attributable net income increased by 19% to P6.93 billion in the same period.

Shares in AC gained P12 or 1.4% to close at P872 each on Thursday. — Arra B. Francia

China Crisis and Peter Coyle live at Robinsons Malls

GROOVE TO the music of the 1980s as the English pop/rock band, China Crisis and Lotus Eaters vocalist, Peter Coyle come to Manila on July 8. Have a chance to “Meet and Greet” these artists at 2 p.m. at Level 2, Main hallway of Robinsons Galleria. Over at Robinsons Magnolia, shoppers and mallers will have a chance to catch their live performance at 6 p.m. in the Mall’s Atrium. China Crisis is a popular English band formed in 1979 led by vocalist/keyboardist Gary Daly and guitarist Eddie Lundon. The band was part of a wave of new Liverpool acts in the late 1970s and early 1980s. Their song “Wishful Thinking” was their biggest and most well-known hit, and was included on numerous compilation albums. Peter Coyle is the vocalist for the Lotus Eaters who rocketed to fame with their first hit single “The First Picture of You” which sold more than 100,000 copies in England.

Phoenix buys 2 firms for P6.26 billion

PHOENIX Petroleum Philippines, Inc. on Thursday said it secured board approval for the plan to buy liquefied petroleum gas (LPG) seller Petronas Energy Philippines, Inc. (PEPI) and Duta, Inc. for $126.1 million (P6.26 billion).

In a disclosure to the stock exchange, Phoenix Petroleum said its board of directors on Wednesday approved the acquisition of 100% shares owned by PDB (Netherlands) B.V. in PEPI and Duta.

PDB or Petronas Dagangan Berhad is the principal marketing unit of Malaysia’s national oil company Petroliam Nasional Berhad.

Phoenix Petroleum said it will make the $126.1 million payment for both companies in cash.

Of the total, $24 million will be paid within three business days after the execution of the share purchase agreements. The remaining $96 million will be paid in full after completion of the deal and approval by the Philippine Competition Commission (PCC).

Phoenix Petroleum will also pay $6.1 million for the acquisition of DUTA in cash.

Merger and acquisition deals in the Philippines valued at least P1 billion are subject to PCC review.

“The Company views the LPG business as a strong strategic fit as it broadens its product portfolio and petroleum presence across the country, with cross selling opportunities in fuel and LPG to consumers and corporates,” Phoenix Petroleum said.

PEPI is primarily engaged in the business of selling LPG in cylinders for household and commercial use, as well as LPG in bulk for industrial use and autogas, an alternative fuel for vehicles.

Duta, on the other hand, manages and holds the various land parcels used by PEPI’s businesses.

Dennis A. Uy, Phoenix Petroleum president and CEO, earlier said the company was planning to spend between P6 billion and P8 billion in the next three year on top of the P2 billion it had set aside for 2017.

In 2016, Phoenix Petroleum posted a net income of P1.09 billion, higher by 21% compared with the earlier year’s bottom line, driven by fuel sales that expanded by double digits after “solid” growth in volume.

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