PXP Energy, Dennis Uy holding firm terminate share purchase deal

PXP Energy Corp. said on Friday that the subscription agreement it signed with Davao City businessman Dennis A. Uy’s Dennison Holdings Corp. had been terminated by the two parties effective on March 29, 2019.
In a disclosure to the stock exchange, PXP Energy said on the termination date, all rights of Dennison to subscribe for the common shares of the PXP, and any of its obligations to issue such shares, are terminated “without any residual rights of any kind remaining” with Mr. Uy’s holding firm.
Accordingly, all other rights of PXP Energy under the agreement are terminated, it said, including the right to receive payment of the remaining balance of the subscription price.
On Oct. 26, 2018, the two parties entered into a subscription agreement calling for PXP Energy to issue 340 million common shares and for Dennison to subscribe for those shares for a total amount of P4.029 billion. The agreement, which priced the shares at P11.85 apiece, was amended on Dec. 26, 2018.
The issuance and subscription deal was subject to certain conditions. In particular, the agreement provided that strategic investor Dennison will be entitled to all rights of a shareholder only upon full payment of the subscription price.
“The cancellation of the Agreement does not affect the funding obligations of the Company in respect of its various service contracts this year,” PXP Energy said.
It also said that it had relinquished any and all preferential rights granted under the preferential rights agreement dated Oct. 26 among Phoenix Petroleum Philippines, Inc., PXP Energy, and the strategic investor after the termination of the agreement.
On Friday, PXP Energy closed down 0.97% at P12.28.
The company made the disclosure after the end of the day’s trading. — Victor V. Saulon