SM goes into logistics, buys minority stake in 2Go Group

SM Investments Corporation (SMIC) completed the acquisition of a minority stake in 2Go Group via a 34.5 percent stake in its parent company, SMIC said on Friday.

2Go is the largest integrated supply chain operator in the Philippines, with its businesses encompassing shipping, freight forwarding, warehousing and express delivery services.

The 2Go deal is an "... opportunity to invest in a fast growing, dynamic logistics business," said SMIC President Harley Sy.

The final valuation of the SMIC-2Go deal is still unavailable, said Cora Guidote, SMIC senior vice president for Investor Relations. "... We are still reviewing some provision," she said.

SMIC intends to benefit from the transaction, as well as contribute to economic progress, "especially as development spreads to the provinces," Sy noted.

In line with the government's plans on tourism, agriculture and infrastructure Sy earlier said the SM Group is positive about broader regional growth.

At the close of the morning trade on Friday, SMIC shares were up by P1.00 or 0.14 percent at 697 per share. At the same time, shares of 2Go Group Inc. traded at P9.65 per share, up P0.07 or 0.73 percent.

SMIC reported a net income of P31.2 billion last year, up 8 percent from a year earlier, with its property business accounting for 39 percent of total earnings,

Consolidated revenue grew by 9 percent to P362.8 billion, from P332.8 billion in the same comparable period, driven by an 8 percent increase in retail revenue and a 12 percent growth in property revenue. — VDS, GMA News