The Department of Energy (DOE) has approved the sale of the 45% stake of Shell Philippines Exploration B.V. (SPEx) in the Malampaya deepwater project to a subsidiary of Razon-led Prime Infrastructure Capital, Inc.<\/p>\n\n\n\n
Our View:<\/strong> This is expected to bolster further the valuation of Prime Infra, which is set to go public this Oct. 26. We note that based on our initial valuation, which excludes the stake in the Malampaya, estimated Target Price for Prime Infra is P17.00\/share (16% upside from tentative offer price of P14.60).<\/p>\n\n\n\n On another note, with Malampaya gas field expected to last until 2027, the objective of Razon in this deal could be to obtain the infrastructure of Malampaya: the processing plant for the extracted nat gas and the 504km pipeline that transports the processed nat gas to Batangas. We note that this set of infrastructure can be utilized to serve neighboring oil and gas fields, which includes APX’s SC 72; recall that Razon has acquired APX last March of this year. Remaining stake in SC 72 is owned by Forum Energy, a subsidiary of PXP.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1236,11],"tags":[],"class_list":["post-317820","post","type-post","status-publish","format-standard","hentry","category-free-reports","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=317820"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317820\/revisions"}],"predecessor-version":[{"id":320543,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317820\/revisions\/320543"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=317820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=317820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=317820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}