2GO to merge with parent Negros Navigation via share swap

Shipping company 2GO Group Inc. is merging its operations with its parent company Negros Navigation via share swap transaction.

In a regulatory filing submitted to the Philippine Stock Exchange on Friday, 2GO Group said its stockholders approved on Thursday the internal restructuring involving the merger of the two companies, with 2GO as the surviving entity.

The company said the merger will "simplify the corporate structure and to develop efficiencies and economies within the group."

"This is in line with 2GO's efforts to streamline operations, reduce costs, and increase shareholder value," it added.

The timetable for implementation of the merger shall be announced, when applicable, as the same is subject to regulatory approval of the Securities and Exchange Commission (SEC), 2GO added.

"2GO and Negros Navigation, however, expect to complete the transaction within the year," the company said.

The shipping company said the share of Negros Navigation composed of 3,364,768,096 common shares, with par value of P0.20 per share; 1,000,000,000 Series A Preferred Shares, with par value of P0.20 apiece; and 1,232,323,315 Series B Preferred Shares, with par value of P0.65 per share shall be exchanged for 2GO common shares.

The company said that shareholders of Negros Navigation shall receive common shares of stock in 2GO using the "exchange or swap ratio of 0.26 2GO share for every one Negros Navigation share."

Negros Navigation currently owns 2,160,141,991 common shares in 2GO, amounting to approximately 88.31 percent of 2GO Group’s outstanding capital stock.

Negros Navigation is primarily engaged in domestic shipping operation and is one of the oldest domestic shipping companies in the Philippines. — MDM, GMA News