PHI Group, a US public company engaged in energy and natural resources, has signed an agreement to acquire 50.90% ownership in Pacific Petro Commercial JSC which is engaged in liquefied petroleum gas (LPG) packaging and distribution in southern Vietnam.

The exchange calls for a combination of US$2 million in cash and stock in PHI Group to Pacific Petro’s majority shareholders.

PHI expects to close this transaction by June 30, 2016 and intends to use Pacific Petro as a platform to consolidate other LPG businesses in South East Asia.

Pacific Petro, the third largest LPG company in southern Vietnam, owns a gas canister manufacturing factory in Ben Cat District, Binh Duong Province and a gas filling plant in District 9, Ho Chi Minh City.

It has also acquired a large lot in Go Dau Industrial Park, Dong Nai Province to build a proprietary LPG storage area and has been granted 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 US$26.67 million in revenues and $613,000 in net profits. In 2015 it recorded more than $19.491 million in revenues and $523,400 (unaudited) in net profits. The decreases in revenues and profits were primarily due to declining prices of petroleum and its by-products during last year.

Pacific Petro expects to generate an average of $10.280 million in additional revenues and $690,000 in net profits per annum from the new LPG storage facilities in Go Dau Industrial Park, and $4 million in additional revenues and $530,000 in net profits by adding a new line of gas-canister manufacturing in 2016, respectively.

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