Power

Dennis Uy ready to take in new investors for Phoenix

Phoenix Petroleum Corp. has obtained approval from its board of directors to unload any properties, assets or investments.

The move is seen as a prelude to a potential takeover or entry of a new investor group in the leading independent and fastest-growing oil firm in the country.

In a stock exchange filing, Phoenix said its board has granted management authority to enter into negotiations under reasonable and acceptable terms and conditions advantageous to the corporation with any third party corporation or any other entity or entities for the possible transfer, sale, mortgage or disposition of certain corporate properties, assets, or investments as may be necessary.

This follows Uy’s divestment of his minority stake in 2Go Group Inc. to the Sy family’s SM Investments Corp. in a bid to cut losses and pare down debt. The deal involves the sale of Uy’s 31.73 percent stake in 2Go for P6.64 billion.

Last month, Uy said he was open to taking in investors, major or minority, who will add value to his businesses and be beneficial to stakeholders.

Phoenix ended 2020 with 665 retail stations across the country, making it the third biggest oil player in the country.

The oil firm incurred a P75 million net loss in the nine months to September last year, a reversal of the P931.5 million profit booked in 2019. Revenues declined by 22 percent to P56.8 billion owing to lower prices.

Total debt stood at P49.2 billion as of end-September.

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