CHELSEA Logistics and Infrastructure Holdings Corp. has completed the sale of its shares in 2GO Group, Inc. to SM Investments Corp. (SMIC) and Trident Investments Holdings Pte. Ltd.

INSTAGRAM/2GO_TRAVEL

It said the sale was completed on June 3, transferring the ownership of 550,558,388 common shares of 2GO to Sy-led SMIC, and of 230,563,877 common shares to Trident Investments.

The shares represent around 31.73% of 2GO’s total issued and outstanding capital stock, comprising Chelsea Logistics’ entire effective interest in it, the Dennis A. Uy-led company said in a disclosure to the stock exchange.

“The sale was done by KGLI-NM Holdings, Inc., a 90% owned subsidiary of Chelsea Logistics at P8.50 per share,” it added.

The deal’s completion was confirmed by SMIC and 2GO in separate disclosures on Thursday.

The transaction resulted in the increase of SMIC’s shareholding in 2GO from around 30.53% to around 52.85%.

Trident Investments, owned and controlled by Singapore-based Archipelago Asia Focus Fund II Pte. Ltd., “purchased 230,563,877 common shares in 2GO from KGLI-NM and 550,558,388 common shares from China-ASEAN Marine B.V., or a total of 781,122,265 common shares representing approximately 31.73% of 2GO,” the listed integrated transportation and logistics provider said in a disclosure.

Frederic C. DyBuncio now serves as chairman of 2GO’s board of directors, replacing Mr. Uy.

Mr. DyBuncio is currently the president and chief executive officer of 2GO and SMIC.

Chelsea Logistics has said proceeds from the sale of its entire stake in 2GO would be used to repay the loan that it had obtained to secure the majority stake in the company in 2017.

“With the divestment, Chelsea will not be impacted by 2GO losses, which will aid the company in recovering from the current [coronavirus disease 2019] pandemic,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a statement in March.

2GO’s attributable net loss reached P291.12 million in the first quarter of the year, compared with a net loss of P108.92 million in the same period in 2020.

The company saw its total revenues decrease 22.7% to P3.99 billion from P5.16 billion previously.

Source: BusinessWorld