Chelsea boosting 2GO stake to 40%

MANILA, Philippines — Chelsea Logistics Holdings Corp. (CLC) is set to increase its ownership in logistics giant 2GO Group Inc. to 40 percent.

CLC president and chief executive officer Chryss Damuy told reporters the firm is currently working on a tender offer to increase its stake in 2GO.

“We are looking to close it to 40 percent,” he said.

CLC, the shipping and logistics business of businessman Dennis Uy, has a 28.15 percent economic interest in 2GO following the acquisition made in March last year.

Damuy said increasing CLC’s ownership to 40 percent would make it the biggest shareholder in 2GO.

He said CLC is waiting for the Philippine Competition Commission’s  approval for the tender offer.

“Once we get their (PCC) nod, we will proceed with the tender offer,” he said.

Under the Securities Regulation Code, a tender offer is required when a person or group intends to acquire 35 percent of the outstanding voting shares or such outstanding voting shares are sufficient to gain control of the board in a public company in one or more transactions within a period of 12 months.

Apart from CLC, SM Investments Corp. also acquired a stake in 2GO last year after buying a 34.5 percent stake in 2GO’s parent firm Negros Navigation Co. Inc.

2GO is an integrated transport solutions provider, with three core business units.

In particular, the company is engaged in commercial and shipping needs through 2GO Freight, passenger ships through 2GO Travel; and logistics, distribution, warehousing, and inventory management through 2GO supply chain.

CLC, meanwhile, is engaged in the transport of passengers, cargo, petroleum, oil, chemicals and other bulk products.