Dennis Uy's Chelsea Logistics selling all stakes in 2GO to SM Investments

Davao-based businessman Dennis Uy’s Chelsea Logistics and Infrastructure Holdings Corp. is divesting from 2GO Group Inc. by selling its entire stakes in the shipping firm to SM Investments Corp. (SMIC) in a bid to raise funds to refinance its debts and shield the company from potential losses.

In a disclosure to the Philippine Stock Exchange on Friday, Chelsea said it has signed agreements to sell all its shareholdings of around 31.73% in 2GO at P8.50 per share.

The logistics firm said the sale will be done through KGLI-NM Holdings Inc., a 90%-owned subsidiary of Chelsea.

Chelsea said it will be completing the sale conditions within the next three months.

"With the divestment, Chelsea will not be impacted by 2GO losses, which will aid the company in recovering from the current COVID-19 pandemic," Chelsea president and CEO Chryss Alfonsus Damuy said.

"With our numerous group-wide initiatives currently being undertaken, we are confident that Chelsea will be best prepared and positioned to take advantage of the recovery of the industry as we move forward," he added.

Chelsea said the proceeds of the sale will be used to pay down the loan obtained for the acquisition of the shares.

In a separate disclosure, SMIC said its board of directors approved the acquisition of the said number of common shares of 2GO from Chelsea.

The acquisition will increase SMIC’s current shareholding in 2GO from 30.49% to at least a majority of the outstanding voting capital stock of the shipping company, “making 2GO a subsidiary of SMIC.”

“In compliance with the Securities Regulation Code and its Implementing Rules and Regulations, the Board of Directors of SMIC likewise authorized the conduct of a mandatory tender offer to all remaining stockholders of 2GO, also at an offer price of P8.50 per share,” SMIC said.

The Sy-led conglomerate said it will be filing its Tender Offer Report with the Securities and Exchange Commission on or before March 22, 2021.

“The Tender Offer Report shall contain, among others, the terms and conditions of the tender offer and other relevant materials,” it said. —KBK, GMA News