Chelsea buys out minority shareholder

MANILA, Philippines — Chelsea Logistics and Infrastructure Holdings Corp. has bought out the minority interest of a Singaporean shareholder in KGLI-NM Holdings Inc.

In a stock exchange filing, Chelsea said it purchased from ES Consultancy Group Inc. 43,081 redeemable preferred B shares and 200 common shares of KGLI-NM Holdings for P874.95 million.

ES Consultancy is minority shareholder in KGLI-NM Holdings, where Chelsea, as well as Udenna Investments B.V. are also stockholders.

With the buyout, KGLI-NM Holdings will become wholly owned by Chelsea as the other shareholder, Udenna Investments, is wholly owned by the company.

Chelsea is a shipping and logistics subsidiary of the Udenna Group of Davao-based businessman Dennis Uy.

The company signed last March agreements to sell its entire effective stake of around 31.73 percent in 2GO Group Inc. to SM Investments Corp. at P8.50 per share.

With the divestment, Chelsea said it would not be impacted by 2GO losses, which will aid the company in recovering from the current pandemic.

The company continues to see signs of recovery as it was able to trim its net loss by 42 percent to P218 million in the first quarter.

The company intends to take advantage of the strong growth in e-commerce, and expects its project proposals for the development and operations of Davao Sasa Port, Davao International Airport and Caticlan Jetty Port to be major drivers for the company’s recovery in the coming years.

It also continues to improve its vessel utilization, route rationalization, revenue management and cost-cutting initiatives as part of its on-going recovery strategy.