Philippines-based oil firm Trans-Asia to take stake in Frontier Oil
Trans-Asia Oil and Energy Development is acquiring an unspecified number of shares in Frontier Oil Corp, according to the latter's disclosure to the Philippine Stock Exchange (PSE). The transaction will be done through Trans-Asia Oil's wholly-owned subsidiary Trans-Asia Petroleum Corp, wrote national news agency Interaksyon.
The PSE disclosure said, "[Trans-Asia] has agreed to an investment of P136 million into Frontier Oil's initial public offering (IPO), currently slated for early 2014."
Frontier Oil owns a stake in four oil and gas contract areas in the Philippines. The company had earlier put off its IPO amid a volatile stock market. Several newly-listed firms at that time had slumped on their trading debut, the report said.
Frontier Oil had announced plans to make a stock exchange listing in order to raise PHP2.3 billion. The IPO proceeds will fund Frontier's petroleum exploration and development contracts, the report stated.
Trans-Asia holds interests in a number of oil and gas blocks in the Philippines. The firm is the energy arm of the private holding firm Philippine Investment Management (PHINMA), Interaksyon reported.