SMIC starts tender offer for 2GO shares

MANILA, Philippines — SM Investments Corp. (SMIC), the holding company of the Sy Group, has commenced a tender offer for the common shares of 2GO Group Inc. at P8.50 per share.

The tender offer is part of its move to raise its stake in the logistics and shipping company to majority after SMIC signed an agreement to buy Dennis Uy’s stake in 2GO for P6.6 billion.

The tender offer will run until April 21, 2021.

SMIC signed an agreement with KGLI-NM Holdings Inc. to acquire 550.5 million common shares representing 22.36 percent of 2GO. This would make 2GO a subsidiary of SMIC.

“This transaction will result in the increase of SMIC’s current shareholding in 2GO from 30.49 percent to approximately 52.85 percent.

Dennis Uy’s sale of his stake in 2GO to the Sy Group ends their partnership which started in 2017 following years of losses and a difficult shipping and logistics environment.

2GO reported a P1.04 billion net loss in the nine months ending September last year, while Chelsea incurred a net loss of P2.6 billion in the same period as revenues of both firms plunged because of weak economic activity brought about by the pandemic.

2GO was formerly owned by the Aboitiz Group, specifically Aboitiz Transport System Corp. before the entry of the Tagud family.

Uy gained entry to the 2GO Group in 2017 after months of legal battle with the Tagud family.