Chelsea to raise P500 million from preferred shares sale

MANILA, Philippines – Dennis Uy’s Chelsea Logistics and Infrastructure Holdings Corp. is raising P500 million from the sale of preferred shares, the proceeds of which will be used to finance projects.

Chelsea in a stock exchange filing said its board of directors approved the subscription of 500,000 preferred shares via private placement to Global Kingdom Investments Ltd.

Issue price of the shares is at P1,000 apiece.

“The proceeds from the above transactions shall be used to finance current and future projects of the company and also for additional working capital,” the company said.

No information on the internet can be found about Global Kingdom Investments Ltd.

Sought for information regarding the entity, Chelsea president and CEO Chryss Alfonsus Damuy said Global Kingdom Investments “represent an investment fund,” but no further details were made available as of press time.

Chelsea will also be increasing its authorized capital stock from P2 billion to P3.5 billion, divided into 3.49 billion common shares and 10 million preferred shares.

The company said both common and preferred shares have the par
value of P1 per share.

Of the increase in the authorized capital stock, Chelsea said Udenna Corp. would be subscribing to 375 million common shares at the price of P3.26 per share based on volume weighted average price 90 days.

Chelsea president and CEO Chryss Alfonsus Damuy earlier told The STAR the company remains keen on pushing through with its unsolicited proposals for the Davao International Airport and the Davao Sasa Port project.
The company has been awarded by the government original proponent status for the Davao Sasa Port modernization project, as well as for the development, operation, and management of the Davao International Airport over a concession period of 30 years.

Chelsea is also part of a consortium declared as the country’s third telecommunications player. Dito Telecommunity plans to launch commercially its network by March next year.

In the first quarter, Chelsea suffered heavily from the impact of COVID-19, incurring a net loss of P354 million, a turnaround from the P139 million income it posted in the same period last year.

In response to the ongoing challenges, the company earlier said it has revisited future strategies which include strengthening its balance sheet and aggressive fixed asset management by slashing planned capital expenditures and disposing of aging and underperforming vessels.

To scale up work efficiencies, the listed firm said it is undergoing workforce rationalization to restructure support functions and right-size existing workforce.

Chelsea has close to 3,000 employees to date and has originally earmarked a capex budget of P2 billion this year.