Dennis Uy's Phoenix sells SG unit to raise money.

MANILA -- Dennis Uy-led oil company Phoenix Petroleum Philippines Inc. is divesting its shares in a Singapore-based subsidiary to generate additional funds to sustain operations.

In a disclosure on Monday, the listed company said its board of directors approved the divestment of PNX Petroleum Singapore Pte. Ltd. 'via share buyback.'

The company did not provide more details. Phoenix Petroleum senior vice president Raymond Zorrilla only said the transaction would be settled in cash as agreed by the parties involved.

'Furthermore, these funds will be used to shore up [Phoenix Petroleum's] working capital needs, particularly to purchase inventory for its B2B (business-to-business) customers,' Zorrilla said in a message.

A share buyback refers to a transaction when a publicly listed company repurchases its own shares to boost the value of the stocks and improve its financial statements.

PNX Petroleum Singapore was incorporated in 2012 while operations commenced in 2017. As the trading and supply arm of Phoenix Petroleum, it facilitates the latter's internal fuel requirements.

'The office trades and supplies a wide range of refined products to serve all kinds of customers, from retailers to ship-owners, from mining and transport companies to airlines,' the company's website reads.

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