SM Investments Corporation (SMIC) has taken control over 2Go Group Inc. with the completion of the divestment of Dennis A. Uy from the company in favor the Sy family’s investment arm and Singapore private equity fund Archipelago Capital Partners Pte. Ltd.
In a disclosure to the Philippine Stock Exchange, SMIC said it has completed its acquisition from KGLI-NM Holdings, Inc. (KGLI-NM) of 550.56 million common shares representing 22.36 percent of 2GO Group. (2GO via a special block sale through the facilities of the PSE.
Dennis Uy’s holding firm Udenna controlled 2Go through Chelsea Logistics and Infrastructure Holdings Corporation which held the shares in the shipping firm through KGLI-NM.
This resulted in the increase of SMIC’s current shareholding from around 30.53 percent to approximately 52.85 percent of 2GO. Following this transaction, 2GO is now a subsidiary of SMIC.
With this development, Dennis Uy resigned as Chairman of 2Go and was replaced by SMIC President Frederic Dybuncio. Dybuncio is also President and Chief Executive Officer of 2Go.
On the same date, Trident Investments Holdings Pte. Ltd. (Trident) purchased 230.56 common shares in 2GO from KGLI-NM and 550.56 common shares from China-ASEAN Marine B.V., or a total of 781.12 million common shares representing approximately 31.73 percent of 2GO.
The sale transactions were also transacted via special block sales through the PSE.
Trident is directly controlled and majority-owned by Archipelago Asia Focus Fund II Pte Ltd, a company incorporated under the laws of the Republic of Singapore and is indirectly controlled by Archipelago Capital Partners.
SM earlier disclosed that it was acquiring the 31.73 percent stake of Chelsea in 2GO Group for P6.64 billion or about P8.50 per share.
“With the divestment, Chelsea will not be impacted by 2GO losses, which will aid the Company in recovering from the current COVID-19 pandemic,” said Chelsea President and CEO Chryss Alfonsus V. Damuy.
He added that, “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.” The proceeds of the sale will be used to pay down the loan obtained for the acquisition of the shares.
After owning a majority of the outstanding voting capital stock of 2GO, making 2GO a subsidiary, SMIC is planning a tender offer for the minority shares of 2GO at P8.50 per share in compliance with the Securities Regulation Code and its Implementing Rules and Regulations.