February 18, 2018, 5:51 am
Facebook iconTwitter iconYouTube iconGoogle+ icon

Chelsea to hike stake in 2Go

Udenna Corp.’s shipping arm, Chelsea Logistics Holdings Corp. (CLC), will undertake a tender offer to raise its stake at 2GO Group Inc. to up to 40 percent this year. 

Chryss Damuy, CLC president and chief executive officer, said the company is working on the tender offer to increase its stake at 2GO from 28.8 percent as it eyes to become 2GO’s biggest shareholder. 

“Our target is to bring our stake to 40 percent. We will breach 35 percent, we will do tender offer by ourselves and we will be the biggest shareholder,” Damuy said.

However, the schedule of the tender offer depends on when the Philippine Competition Commission (PCC) approves CLC’s proposed acquisition of KGLI-NM Holdings Inc. of 50.37 percent from Negros Holdings & Management Corp. (NHMC) and 9.93 percent of KGLI-NM from ES Consultancy Group Inc.

“I think there are few items that PCC is asking. So once we get their nod, we will proceed with tender offer,” Damuy told reporters. 

He added: “We have to work with them. It’s regulators. You can’t do but comply.”

After the preliminary review within 30 calendar days from Oct. 11, 2017, PCC’smergers and acquisitions office (MAO) decided to continue the review within a period of 60 calendar days from Nov. 10, 2017.

The PCC said a more detailed inquiry is being conducted if the transaction is likely to lead to a substantial lessening of competition in the cargo and passenger transport markets, where the MAO has identified 10 horizontal overlaps (routes) for passenger transport and 12 horizontal overlaps (routes) for cargo transport.

“The commencement of a Phase 2 Review of the Transaction does not signify that MAO has made a definitive finding of a substantial lessening of competition or prejudge the final result of the review. This merely signifies that the Transaction requires a more detailed analysis based on further information requested from the notifying parties and such information as may be necessary to complete the review,” PCC said in a statement. 

“The MAO seeks to investigate whether post-Transaction, there will be a loss of competition in the identified routes and whether the Transaction increases the likelihood thatcompetitors providing the same type of service for the identified routes will coordinate theirbehavior or strengthen existing coordination in a manner that harms competition,” PCC added.

PCC also said the MAO will investigate, among others, whether post-transaction, no foreclosure of competitors or customers will occur in marketssuch as, but not limited to, the supply of marine fuel, domestic logistics services, tugging operations, port operations, ship repair, manpower services and ship management, where vertical relationships of the parties’ operations are present.

KGLI-NM holds 60 percent share in Negros Navigation Co. Inc. (NENACO), a domestic shipping company in the Philippines. NENACO has 88.93 percent share ownership in the 2GO Group, which is engaged in the transport of people and cargo through its shipping and logistics subsidiaries.

CLC is a wholly-owned subsidiary of Udenna, whose portfolio includes Phoenix Petroleum Holdings Inc., among others. Udenna, through CLC, is engaged in domestic shipping activities, while Phoenix Petroleum and its subsidiaries supply and distribute fuel.
Category: 
Rating: 
No votes yet

Column of the Day

The remunerative rice importation

By DAHLI ASPILLERA | February 16,2018
‘The Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. § 78dd-1, et seq.) is a United States federal law known primarily for its main provision: Against bribery of foreign countries’ food management officials.’

Opinion of the Day

Ombudsman probe on Duterte wealth can be refiled

By ELLEN TORDESILLAS | February 16, 2018
‘A closed and terminated field investigation is without prejudice to the refiling of a complaint with new or additional evidence.’