Uy's Udenna seeks ‘strategic partners’ for its units

Davao-based tycoon Dennis Uy’s conglomerate Udenna Corp. is looking for strategic partners for its units as part of its move to expand its businesses.

In a statement, Udenna Corp. said potential strategic investors are being invited to invest in Chelsea Logistics & Infrastructure Holdings Corp. and Phoenix Petroleum Philippines Inc.

"We are looking for partners who can help us further expand our businesses and promote our brands. We have clearly spelled out our growth strategy, which does not simply include selling assets. Like all visionary entrepreneurs, we want to go beyond the buy and sell mentality and move towards a more sustainable business that protects and supports the thousands of families that depend on us," said Uy.

The Uy-led conglomerate said its units are up for strategic partnerships to remain profitable.

In particular, the conglomerate said Chelsea booked a 37% growth in revenues in the first half of 2022 at P2.91 billion from P2.13 billion year-on-year.

It said that revenues from Chelsea’s freight business rose by 57% to P1.59 billion while its passenger segment saw its topline figures surge by 297% to P516.53 million for the period amid the easing of mobility restrictions.

Udenna’s fuel retailing arm, Phoenix, returned to profitability in the second quarter of 2022 with a net income of P201 million.

The conglomerate also expressed optimism about its telecommunications foray.

It said DITO Telecommunity Corp. might attain a positive bottom line by 2026 or 2027.

Udenna’s DITO CME Holdings Corp. has a 53% stake in DITO Telecom.

DITO Telecom already hit its year-end target of 12 million subscribers, following the launch of its commercial operations in March 2021.

Udenna said DITO Telecom would soon finish negotiations with a consortium of lenders headed by the Bank of China for a $4.1 billion long-term loan to finance the expansion of its network, which must cover 84% of the population by 2024. —VBL, GMA News