Philex pays PXP Energy P1.4B for first tranche of share subscription deal

Philex Mining Corp. has paid PXP Energy Corp. P1.4 billion to raise its stake in the oil exploration company.

The Pangilinan-led miner said it paid P1,366,450,000 for 260 million common shares in PXP Energy, according to a regulatory filing submitted Tuesday by Philex senior vice president and chief finance officer Danny Yu.

The amount covers the first tranche of Philex’s subscription after the miner paid a 25-percent down payment or P770.25 million in December 2018. The deal calls for Philex to pay for the total subscription in two tranches.

Last October, Philex and PXP signed a subscription agreement at P11.85 per share or a total of P3.081 billion.

Philex is funding deal through a combination of cash and the proceeds from PXP’s repayment of the advances from the mining firm.

The miner aims to raise its stake in PXP from 19.76 percent to 25.91 percent after the deal is consummated.

PXP is raising funds via subscription agreements to finance its exploration activities and other oil assets in the Philippines and in Peru, and to repay its cash advances from Philex. —Ted Cordero/VDS, GMA News