Chelsea realigns assets with sale of shares in Dito Telecommunity

MANILA, Philippines — Chelsea Logistics and Infrastructure Holdings Corp. is selling common and preferred shares of Dito Telecommunity Corp. to Dito Holdings Corp.

Dito Telecommunity is Davao-based businessman Dennis Uy’s telecommunications company which is also engaged in the business of multimedia and information technology while Dito Holdings Corp. is a private company.

This is different from Dito CME Holdings, formerly ISM Communications Corp. (ISM), and a listed holding company which acquired Uy’s Udenna Communications Media and Entertainment Holdings Corp last year.

In a disclosure yesterday, Chelsea said its board of directors approved the sale of its 40.8 million common shares and 22.9 million preferred shares of Dito Telecommunity Corp. to Dito Holdings.

“The transfer of the shares is only for the purpose of restructuring Chelsea’s shareholdings in Dito Telecommunity and to streamline the shareholdings of Chelsea and of Udenna in Dito Telecommunity through a holding company, Dito Holdings Corp. Insofar as Chelsea Logistics and Infrastructure Holdings Corp. is concerned, despite the sale, it will continue to hold 25 percent of Dito Telecommunity albeit indirectly through Dito Holdings,” Chelsea said.

Chelsea Logistics, through its wholly owned subsidiaries, is engaged in the shipping transport business. These two subsidiaries are Chelsea Shipping Corp., which is engaged in the maritime trade; and Trans-Asia Shipping Lines, Inc., which is engaged in transporting passengers and cargo within Philippine territorial waters.

In 2017, Chelsea acquired all of Uy’s Udenna Investments B.V.’s (UIBV) outstanding capital stock through a share swap agreement with Udenna Corp.

UIBV owns 80 percent economic interest and 39.97 percent of the voting rights in KGLI-NM Holdings, which holds 39.85 percent economic interest in Negros Navigation Co. Inc. (Nenaco).

Nenaco, in turn, owns 88.31 percent of 2GO Group, Inc. Chelsea, on the other hand, has a 28.15 percent indirect economic stake in 2GO.

Last year, Chelsea acquired The Supercat Fast Ferry Corp., a shipping company engaged in the operations of fast crafts in Cebu, Batangas, Calapan, Ormoc, Bacolod, Iloilo and Tagbilaran.