Udenna to hike ownership in 2GO to 35%

MANILA, Philippines -  Udenna Corp., the holding company of businessman Dennis Uy, is looking to increase its ownership in logistics giant 2GO to 35 percent from 28.2 percent, according to documents related to the planned initial public offering of its subsidiary Chelsea Logistics Corp. (CLC) in July.

Uy said last month that his group is willing to take a bigger slice of 2GO should an opportunity arise.

CLC’s parent company Udenna acquired in March a 28.2 percent beneficial ownership in 2GO, leading to the appointment of Uy as the new president and CEO of the company.

Udenna owns 31 percent of KGLI-NM Holdings Inc., which in turn has a 60 percent stake in 2G0’s parent company Negros Navigation Co. Inc.

SM Investments Corp., meanwhile, has a 34.5 percent stake in Nenaco, which it acquired from China-ASEAN Marine BV, an investment fund, which is now left with a 5.5 percent stake.

An opportunity to increase a stake in 2GO may come from China-Asean Marine should it decide to sell its remaining 5.5 percent stake, industry sources said.

Uy earlier said he is looking to consolidate CLC and his stake in 2GO, which would result in a super shipping company.

CLC, meanwhile, is looking to spend P2.7 billion this year for expansion wherein it would add seven vessels to its existing fleet, according to the documents.

Within the next two years, the investment for expansion would total to P4.2 billion.

Funding for this growth would come from CLC’s planned IPO in July.

It plans to sell up to 546 million primary shares at a maximum price of P14.63 each. It tapped BDO Capital & Investment Corp. as issue manager, book runner and lead underwriter.

Of the estimated net proceeds of P7.6 billion, the company will spend the bulk or P4 billion for the acquisition of other shipping and logistics companies and P2.7 billion for the acquisition of new vessels and other equipment.

At present, CLC through Chelsea Shipping, Trans Asia Shipping and 2GO shipping has a fleet of 57 vessels.

CLC posted a net income of P132 million last year, a 35 percent jump from 2015’s P98 million, according to company documents.

Net sales grew P2.9 billion last year, up 16 percent from P2.5 billion a year ago, data also showed.

It expects growth to continue as the company has laid down several strategies to sustain growth.