Conglomerate SM Investments Corp. said Thursday it completed the acquisition of a controlling stake in transportation and logistics firm 2Go Group Inc.
SMIC said in a disclosure to the stock exchange it acquired 550.558 million common shares in 2GO from Chelsea Logistics and Infrastructure Holdings Corp. of businessman Dennis Uy.
The shares are equivalent to a 22.36-percent additional stake in 2Go, boosting SMIC’s stake in the company to 52.85 percent from 30.53 percent. The transaction was worth P4.68 billion.
“Following this transaction, 2Go is now a subsidiary of SMIC,” the conglomerate said. It said the additional investment in 2Go is part of its plan to expand its logistics business.
Meanwhile, Chelsea Logistics reported that it completed the sale of additional 230.563 million common shares in 2GO to Trident Investments Holdings Pte. Ltd.
The sale was transacted via special block sales through the Philippine Stock Exchange Inc. Trident is an entity 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 Pte. Ltd.
Archipelago is a Singapore-based private equity firm that is licensed by the Monetary Authority of Singapore to invest across Southeast Asia.
After the sale transactions, 2Go ceased to be an affiliate of Chelsea Logistics.
2Go is the country’s largest integrated supply chain operator whose businesses include shipping, freight forwarding, warehousing and express delivery services. It widened its net loss in the first quarter to P291 million from P108.9 million in the same period last year amid the economic slowdown brought about by the COVID-19 pandemic.
First-quarter revenues also went down by 23 percent to P3.9 billion from P5.1 billion a year earlier. The share price of 2Go dropped 1.45 percent Thursday to close at P8.18.