MANILA, Philippines - Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV) has officially exited the shipping business, completing its pullout in the sector that began in 2010.
In a regulatory filing, AEV said it sold its shares in the Abojeb shipping group for $8.3 million, allowing the company to focus on other core businesses.
“The divestment of interest in the Abojeb Group is part of AEV’s strategy to focus on its identified core businesses such as power generation and distribution, financial services, food and real estate and infrastructure,†AEV said.
Specifically, AEV sold its 62.5-percent stake in Abojeb Group companies Aboitiz Jebsen Co. Inc., Aboitiz Jebsen Manpower Solutions Inc. and Jebsens Maritime Inc. to PTC Holdings Corp., Behike Holdings Inc., Valdicava Holdings Inc., Jebsen Invest A.S. and Furunes Holdings Inc.
The purchase includes Abojeb Group’s stake in subsidiaries Starbulk Aboitiz Jebsen Crew Management Philippines Inc., Filscan Shipping Inc., General Charterer Ocean Shipping Inc., Selandia Crew Management, Olympic Jebsen Offshore Inc., and Viking International Carriers Inc., all of which are engaged in recruitment, ship manning and related businesses.
“Jebsen Invest AS, AEV’s long-time partner in the Abojeb Group, will continue to partner with Aboitiz family members in their personal capacity,†AEV said.
Aboitiz Jebsen, international maritime service provider, was set up in 1982 as a joint venture between pioneers in the transport business: the hundred-year-old Aboitiz Group and the Jebsens Group of Norway.
In 2010, AEV sold its subsidiary Aboitiz Transport Systems Corp. (ATS) to Negros Navigation Co. Inc. for $81 million. The move allowed AEV to focus on other core businesses amid the slump in the passage and freight shipping business.
However, Aboitiz Jebsen was exempted from the sale after AEV acquired ATS’ majority stake in the joint venture firm for P355.91 million.
AEV is substantially increasing its capital expenditures to P88 billion this year, up almost 50 percent from P59 billion in 2013, to bankroll the expansion of the power generation, banking, food and property subsidiaries.