Chelsea Logistics Holdings Corp., the logistics and infrastructure unit of businessman Dennis Uy, canceled a planned P5-billion preferred shares offering even after securing the approval of the Philippine Competition Commission to acquire Trans-Asia Shipping Lines Inc.
CLC said in a disclosure to the stock exchange it decided not to proceed with the fund raising activity and withdrew an application earlier filed with the Securities and Exchange Commission.
“The company will disclose subsequent plans for fund-raising,” CLC said.
The company earlier planned to offer up to three million common shares with an oversubscription of up to two million preferred shares at an price up to P1,000 apiece.
The company was supposed to use the net proceeds from the fund raising activity to fund at he cquisition of shipping and logistics companies and the purchase of additional vessels.
CLC in a separate disclosure said the PCC informed it that it would not take action against a planned acquisition of two million common shares in Tasli.
CLC obtained the PCC approval after committing to conduct a price monitoring of passenger and cargo rates, submit semi-annual reports on all trips of passenger and cargo services in the critical routes, explain all extraordinary rate increases in the critical routes, and maintain the service quality of passenger and cargo routes based on a customer satisfaction index developed by a third party monitor.
The PCC in July voided CLC’s acquisition of Talsi for its failure to notify the antitrust body of the 2016 deal, even though the size of the transaction fell under the compulsory notification threshold of P1 billion at that time.
The PCC ruled that a notification should have been filed because Talsi at the time of share acquisition had gross assets of ₱1.1 billion, a little over the threshold.
The PCC also imposed a P22.8-million million fine on CLC and parent Udenna Corp. The fine was later reduced to P11.4 million
CLC through its wholly-owned subsidiaries has 16 tankers, 14 tugboats, 22 RoPax vessels, 11 cargo ships, and one floating dock, while 2GO Group operates eight RoPax vessels, five cargo ships, and 11 fast craft.