Chelsea defers preferred share sale

MANILA, Philippines — Chelsea Logistics Holdings Corp. (CLC), the logistics company chaired by Davao-based businessman Dennis Uy has decided to defer its P5 billion preferred share sale despite improving market conditions.

Uy said the company would instead tap the debt market, noting that its balance sheet is strong enough to accommodate borrowings.

“We defer the preferred share sale as a company strategy. With our equity position now, we prefer to tap the debt market as it is more cost efficient for now and our balance sheet can absorb it,” Uy told The STAR.

He said the company would reserve tapping the equity market for possible bigger projects and opportunities.

“Upon careful consideration by CLC of its business strategies, the company has decided not to proceed with the offering of three million preferred shares with an oversubscription option of up to two million preferred shares and has accordingly withdrawn its application for listing of these shares. The company will disclose subsequent plans for fundraising,” CLC said.

Last year, the company filed with the Securities and Exchange Commission its application to sell up to three million preferred shares and another two million preferred shares to cover oversubscription at P1,000 apiece.

Preferred shares are cumulative, non-voting, non-participating, non-convertible and peso-denominated.

The company was planning to expand its shipping and logistics network with the development of logistics facilities and vessels and vessel equipment.

Uy said CLC was interested in acquiring a company that provides shipbuilding and repair services. It is also looking to acquire companies engaged in passenger and cargo operations, depending on the opportunities.