Phoenix Petroleum buys into 3 firms, sets up realty unit

Listed firm Phoenix Petroleum Philippines Inc. on Tuesday disclosed that its board has approved the acquisition of stakes in three "strategic" firms to further compliment its expansion program for a total amount of P6.375 million. In a statement to regulators, Phoenix Petroleum said it bought 3,750 shares from PFL Petroleum Management Inc. for P1,333.33 each or a total amount of P5 million. It also acquired 10,000 shares of Phoenix Global Mercantile Inc. for P100 each or a total amount of P1 million. The company added that it acquired 3,750 shares from Petrologistix Services Corp. for P100 or a total amount of P375,000. "The acquisition of the above shares is intended primarily to gain full control of the strategic business operations of these companies that are necessary to further support and enhance the strategic expansion plans and programs of the company geared towards achieving a sustained growth in revenues and income within the medium term," Phoenix Petroleum said. Petrologistix is in the business of hauling various petroleum products to various consumers of Phoenix Petroleum in nearby provinces and in Luzon. It is also eyeing to service other business partners such as PTT and Cebu Pacific. Phoenix Global, on the other hand, is into importation and distribution of the Emara brand of lubricants. PFL Petroleum manages PTT retail stations in Luzon. Phoenix Petroleum has also formed a new subsidiary, which is proposed to be known as PNX Realty Corp. The subsidiary is intended to handle the acquisition of properties and subleasing them to various franchise holders. "Thus, this new wholly owned subsidiary shall address and focus on the leasing and/or purchase of several real properties primarily for the company and at the same time, open other potential real estate business opportunities," Phoenix said. The company earlier said it is looking to put up 100 new gas stations in 2008, most of them to be located in Mindanao. - Cheryl Arcibal, GMANews.TV