Philex pays additional P1.3 billion to PXP Energy

MANILA, Philippines — Philex Mining Corp. has paid over P1.3 billion to PXP Energy Corp. for its subscription to the upstream oil and gas firm.

So far, Philex has made a total payment of P2.16 billion, with a balance of P924.3 million.

In October 2017, Philex signed a subscription agreement for 260 million common shares of PXP Energy at P11.85 per share or a total of P3.08 billion in total.

A  25 percent downpayment amounting to P770.25 million was settled in December.

The last payment will be made upon the call of the PXP Energy board.

Once completed, the subscription will raise Philex’s shareholding in PXP Energy from 19.76 percent to 25.91 percent.

Other investors include Asia Link B.V. (16.73 percent), Social Security System (13.73 percent), First Pacific Co. Ltd. (8.23 percent), and Two Rivers Pacific Holding Corp. (7.72 percent).  The balance is held by the public.

Meanwhile, Dennison Holdings Corp.—the holding company of businessman Dennis Uy—also subscribed to PXP Energy shares.  As a result, it will own a 14.78 percent stake  in the oil and gas company.

“PXP intends to use the proceeds from the private placement shares to fund its exploration activities and other oil assets within the Philippines and in Peru, and to repay advances from Philex,” it said.