By Myrna M. Velasco – December 27, 2018, 10:00 PM
from Manila Bulletin
The Dennison Holdings Corporation of businessman Dennis Uy has entered into an amended agreement with PXP Energy Corporation enjoining the former to accelerate its payment on its shares subscription to the Pangilinan-led oil and gas company.
In a disclosure to the Philippine Stock Exchange, PXP Energy noted that on Wednesday (December 26), “the parties agreed to reschedule and accelerate the full payment of the subscription price,” referring to the shareholdings acquired by Dennison Holdings.
The Pangilinan-led firm qualified that such shall be “net of down payment,” and the settlement due date shall not be later than March 31, 2019.
It must be recalled that Dennison Holdings subscribed to at least 340 million common shares in PXP Energy for a total value of P4.03 billion.
PXP Energy emphasized that “Dennison shall also pay a down payment equivalent to one percent the total subscription price on or before January 7, 2019.”
And in the event that Dennison Holdings reneges on the agreed payment due date and settlement terms, “the entire amount of the down payment shall be forfeited in favor of PXP and the subscription agreement shall be terminated at the option of PXP.”
It was further stipulated that on the subscription to the shares and full payment of the agreed price, Dennison “shall be entitled to at least one seat in the board.”
In particular, Uy’s firm can “nominate the vice chairman of the board,” and will also gain all other rights of a shareholder.
PXP Energy and Dennison Holdings along with China National Offshore Oil Corporation (CNOOC) are at that phase of cementing a partnership to pursue drilling at the latter’s Sampaguita petroleum block.
As a side agreement, Uy has also extended ‘preferential rights’ to PXP Energy for it to join the former’s proposed investment plunge into liquefied natural gas (LNG) facilities – its other tie-up with CNOOC in the gas sector.