Aboitiz Equity Ventures exits shipping business

Aboitiz Equity Ventures Inc. (AEV) has sold all its interests in the shipping business for $8.3 million (roughly P374 million) to Norway-based firms to focus on core business.

In a disclosure to the Philippine Stock Exchange, AEV said it completed the sale of its stake in the shipping business to PTC Holdings Corp., Behike Holdings Inc., Valdicava Holdings Inc., Jebsen Invest A.S. and Furunes Holdings Inc.

"The divestment of interest in the Abojeb Group is part of AEV’s strategy to focus on its identified core businesses such as power generation and distribution, financial services, food and real estate and infrastructure," the disclosure read.

The sale involved interests in the Abojeb Group, namely Aboitiz Jebsen Company Inc., Aboitiz Jebsen Manpower Solutions Inc., and Jebsens Maritime Inc.

It also included Abojeb Group's interest in subsidiaries engaged in recruitment, ship manning and related businesses: Starbulk Aboitiz Jebsen Crew Management Philippines Inc., Filscan Shipping, Inc., General Charterer Ocean Shipping Inc., Selandia Crew Management Olympic Jebsen Offshore Inc., and Viking International Carriers Inc.

AEV, however, said long-time partner in the shipping business Jebsen Invest AS will continue to partner with Aboitiz family members in their personal capacity.

In 2010, AEV sold its century-old shipping business Aboitiz Transport Systems (ATS) Corp. to Kuwaiti-backed rival Negros Navigation Co. Inc (Nenaco) for $81 million to focus on expanding its banking and energy-related businesses.

For 2014, AEV set a capital expenditure of P88 billion and the power business under Aboitiz Power Corp. will get the lion's share of the total. — Danessa O. Rivera/BM, GMA News