Fortman Cline advised on the MA of 100% equity stake in a leading LPG distribution company, Liquigaz Philippines Corporation
Fernwood Holdings acquires Liquigaz Philippines from Cosco Capital Inc., the listed retail holding company owned by Lucio Co. Cosco disclosed last October 2018 that it was exiting the LPG business, noting in a statement that the divestment “will allow the firm to maximize shareholders’ value and achieve financial flexibility moving forward.”
Liquigaz Philippines is the second largest supplier of LPG in the country accounting for about 30 percent of total market volume and is the biggest seller in Luzon.
More than 60 percent of the country’s annual LPG importation is unloaded, stored and sold from Liquigaz’s 12,500-metric-ton capacity storage tanks in Mariveles, Bataan, the largest of such facility in the Philippines. It is the only supplier capable of receiving both refrigerated and pressurized LPG cargo.
The transaction was subject to approval from the Philippine Competition Commission (PCC). In January 21, 2019, it was announced that the PCC approved Fernwood Holdings Inc.’s 100% acquisition of Liquigaz Philippines Corp, stating that the deal would not likely result in the substantial lessening of competition for the bulk and cylinder supply of LPG in Luzon.
Fortman Cline Capital Markets Limited served as Financial Advisor.