Chelsea to increase holdings in 2GO Group
Chelsea Logistics Holdings Corp. said it plans to buy out minority shareholders of 2GO Group Inc. to increase its stake in the shipping and logistics company.
CLC president and chief executive Chryss Alfonsus Damuy said the company was on the process of acquiring minority shareholders with the Philippine Competition Commission looming as a hurdle.
“I think there are few items (being asked by the) PCC. So, once we get their nod, we will proceed with tender offer,” Damuy said.
He said the company was looking at increasing its stake in 2GO to 40 percent from the current 28.15 percent indirect economic interest.
CLC earlier informed the PCC that it was acquiring shares representing 50.37 percent of KGLI-NM Holdings Inc. from Negros Holdings & Management Corp. and 9.93 percent of KGLI-NM from ES Consultancy Group Inc.
Chelsea is a wholly-owned subsidiary of Udenna Corp., whose holdings include Phoenix Petroleum Holdings Inc.
KGLI-NM holds 60 percent of Negros Navigation Co., Inc., a domestic shipping company in the Philippines. Nenaco has an 88.93-percent stake in 2Go Group, which is engaged in the transport of people and cargo through its shipping and logistics subsidiaries.
The PCC is reviewing the transaction after initial market investigation conducted by its Mergers and Acquisition Office indicates the deal may affect the logistics and domestic shipping industry, especially passenger and cargo transport, and its related and complementary services.
CLC recently acquired logistics management company Worklink Services Inc and completed the purchase of Starlite Ferries Inc.
CLC bought all 475,000 shares in WSI for an undisclosed sum. It earlier closed its 100-percent acquisition of Starlite for up to $31.2 million (P1.6 billion) after the PCC ruled the transaction “does not result in a substantial lessening of competition in the relevant market.”
Starlite as a local roro (roll-one/roll-off) shipping firm brings into CLC a 14-member fleet, including five roll-on/roll-off vessels acquired in 2016 and 2017.
2GO has a separate fleet of 16 RoPax and eight cargo vessels.