Udenna Group’s Chelsea Logistics and Infrastructure Holdings Corp. on Friday announced SM Investment Corp. (SMIC)’s acquisition of its entire effective stake in affiliate 2GO Group Inc.
In a filing to the exchange, the shipping and logistics firm said the Sy-led firm will be taking over its 31.73-percent stake in 2GO at P8.50 per share.
Chelsea said funds from the sale will be used to pay the loan obtained for the acquisition of the shares.
The transaction will be done through KGLI-NM Holdings Inc., a 90-percent owned subsidiary of Chelsea and sale conditions will be completed within the next three months.
“With the divestment, Chelsea will not be impacted by 2GO losses, which will aid the company in recovering from the current Covid-19 pandemic. With our numerous group-wide initiatives currently being undertaken, we are confident that Chelsea will be best prepared and positioned to take advantage of the recovery of the industry as we move forward,” Chelsea President and Chief Executive Officer Chryss Alfonsus Damuy said in the filing.
In a separate disclosure, SMIC said the acquisition will increase its current shareholding in
2GO from 30.49 percent to at least a majority of the outstanding voting capital stock.
This will also make 2GO a subsidiary of SMIC.
SMIC added that its board also approved the conduct of a mandatory tender offer to all remaining stockholders of 2GO also at P8.50 per share.