NEW YORK, Feb. 03, 2016 (GLOBE NEWSWIRE) -- PHI Group (OTC Markets:PHIL), a U.S. public company engaged in energy and natural resources, announced today that it has signed an agreement to acquire a 50.90% equity ownership in Pacific Petro Commercial JSC (aka Pacific Petro Trading Corporation).
Pacific Petro is engaged in liquefied petroleum gas (LPG) packaging and distribution in Southern Vietnam. The exchange calls for a combination of $2 million in cash and stock in PHI Group to Pacific Petro’s majority shareholders.
The final sale and purchase price will be determined by the majority shareholders of Pacific Petro and PHI Group following the completion of a PCAOB-qualified audit of Pacific Petro’s financial statements and a valuation of its business by independent reputable auditing and valuation firms.
Pacific Petro, the third largest LPG company in Southern Vietnam, owns a gas canister-manufacturing factory on a 215,200 square-foot lot in Ben Cat District, Binh Duong Province and a gas filling plant on a 65,600 square-foot lot in District 9, Ho Chi Minh City, Vietnam. It has also acquired a 93,600 square-foot lot in Go Dau Industrial Park, Dong Nai Province to build a proprietary LPG storage area and has been granted 83 acres of land in Phu Huu Village, Nhon Trach District, Dong Nai Province to build an integrated port for imports of energy-related commodities and products.
In 2014 Pacific Petro generated approximately $26,670,000 in revenues and $613,000 in net profits. In 2015 it recorded $19,491,800 in revenues and $523,400 (unaudited) in net profits. The decreases in revenues and profits in 2015 were primarily due to declining prices of petroleum and its byproducts during last year. Pacific Petro expects to generate an average of $10,280,000 in additional revenues and $690,000 in net profits per annum from the new LPG storage facilities in Go Dau Industrial Park, and $4,000,000 in additional revenues and $530,000 in net profits by adding a new line of gas-canister manufacturing in 2016, respectively. Website: http://www.pacificpetro.com.vn/
The Company expects to close this transaction by June 30, 2016 and intends to use Pacific Petro as a platform to consolidate other LPG businesses in Southeast Asia. Successful completion of the deal will qualify PHIL for listing on Nasdaq.
About PHI Group
PHI Group, Inc. (www.phiglobal.com), a U.S. publicly traded company established in 1982, adopts a double-tracked strategy to cater to the needs of conventional energy and renewables and invests in mineral and natural resources.
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Source: PHI Group, Inc.