Prime Infra Holdings (PIH), the private holdco owned by Enrique Razon, announced that it was in discussions to acquire a controlling interest in the Malampaya natural gas project from Udenna Corp, the private holdco owned by Dennis Uy.
There were no details released on the size of the stake to be acquired, or the price that PIH will pay for that stake, but the statements of PIH and Udenna seem to suggest that Dennis Uy (through Udenna) will stay invested in the project with a minority stake of some size.
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While this doesn’t technically touch any publicly-traded companies on the PSE, it is interesting to note that Enrique Razon appears to be the oligarch best positioned to pick up the pieces from other oligarchs that have experienced “sudden political instability”, as with the Ayala Family’s conflict with President Duterte that prompted the Ayalas to sell a controlling stake in Manila Water [MWC 17.22 4.23%] to Enrique Razon a few years ago.
Razon also seems well-positioned to scoop up distressed assets from businessmen that are overextended and unable to navigate the changing economic and political landscape.
Regardless of how all these magnificent jewels end up under Enrique Razon’s control, the real test of Razon’s acquisition streak will be his ability to actually operate these assets competently and maintain steady control for many years to come.
Razon and his team have demonstrated an ability to operate through difficult financial times, even in industries like gaming that were absolutely decimated by the COVID-19 pandemic.
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