Udenna looking for new investors
Udenna Corp., the holding company of Davao-based businessman Dennis A. Uy, is looking for strategic partners for some of its subsidiaries to manage resources and support growth.
The company announced this call for new investors Wednesday, August 31, particularly for Chelsea Logistics & Infrastructure Holdings Corp. and Phoenix Petroleum Philippines Inc.
"We are looking for partners who can help us further expand our businesses and promote our brands," Uy disclosed.
"We have clearly spelled out our growth strategy which does not simply include selling assets. Like all visionary entrepreneurs, we want to go beyond the buy and sell mentality and move towards a more sustainable business that protects and supports the thousands of families that depend on us," he stressed.
Despite its call for new investors,, the company noted that the Udenna units that need strategic partners remained profitable with Chelsea reporting a 37 percent increase in revenues during the first half of 2022.
Chelsea generated P2.91 billion, a notable improvement from the 2.13 billion it recorded during the same period last year.
Revenues from freight business improved by 57 percent to P1.59 billion while passenger segment saw its topline figures surge by 297 percent to P516.53 million for the period amid the easing of mobility restrictions.
Phoenix, on the other hand, returns to profitability in the second quarter of 2022 with a net income of P201 million.
Gradually recovering from the loss in the first quarter, gains from its overseas businesses and continued OPEX discipline across the Group grew EBITDA by 67 percent quarter-on-quarter.
The company is reaping the benefits of its long-standing commitment in streamlining operations and maximizing efficiency across the business as OPEX was lower by 10 percent quarter-on-quarter.
As part of its pre-pandemic OPEX and CAPEX rationalization programs, Phoenix has continued to advance resource management initiatives and operational improvements.
The company is likewise developing a new supply model to navigate through the persistent volatility in the markets and foreign exchange.
Udenna is also upbeat about its telecom foray, expecting a positive bottom line for DITO Telecommunity Corp by 2026 or 2027.
DITO CME Holdings Corp declared the company remains on track on the business plan despite two-and-half years of the pandemic.
DITO CME has a 53 percent stake in DITO Telecom. Assuming there is no event risk the telecom venture's EBITDA is also on track to be positive as early as the end of 2024.
Furthermore, DITO Telecom will soon finish negotiations with a consortium of lenders headed by Bank of China for a $4.1 billion long-term loan to finance the expansion of its network, which must cover 84 percent of the population by 2024.