Sy-led group SM Investments Corporation takes over 2Go

Chelsea Logistics and Infrastructure Holdings Corp. completes the sale of its shares in transportation and logistics firm 2Go Group, Inc. to SM Investments Corp. (SMIC) and Trident Investments Holdings Pte. Ltd.

In SMIC's disclosure to the Philippine Stock Exchange (PSE) on June 3, the Sy-led group announced the completion of its acquisition of 550,558,388 common shares of 2GO through KGLI-NM Holdings, Inc. (KGLI-NM), a subsidiary of businessman Dennis Uy’s Chelsea Logistics.

The common shares involved represent 22.36% of 2Go, and the completion of the said transaction increases SMIC’s stake in the company to 52.85 percent from 30.53 percent, making the transportation and logistics firm its subsidiary.

With the changes, SMIC President Frederic Dybuncio replaced Dennis Uy as chairman of 2Go and is also named president and CEO of the supply chain operator.

On the same day, Trident Investments Holdings Pte. Ltd., the investment entity of Singapore-based private equity firm 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 about 31.73% of 2GO.

Both transactions were done via special block sale through the PSE.

The proceeds of the sale, according to Chelsea Logistics, will be used to settle the loan obtained for the acquisition of the shares.

“With the divestment, Chelsea will not be impacted by 2GO losses, which will aid the company in recovering from the current COVID-19 pandemic,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a statement in March.

2Go is an integrated supply chain operator with businesses in shipping, freight forwarding, warehousing, and express delivery services. It incurred a net loss of P1.8 billion in 2020, a 107 percent increase from 2019, and posted a net loss of P291 million in the first quarter of the current year, higher than the P110.595 million posted in the same period last year.

Source:
SM Investments Corp. on PSE
2Go Group, Inc. on PSE