2GO to voluntarily delist from PSE main board
MANILA, Philippines — Philippines-based logistics company 2GO Group, Inc. (2GO) will turn private by July 17 following the approval of its voluntary petition for delisting of all its common shares from the main board of the Philippine Stock Exchange, Inc. (PSE).
2GO, in a stock exchange disclosure on Thursday, confirmed its decision to go private after its parent group SM Investments Corp. (SMIC) settled the tendered shares purchase last May 10.
During the tender offer period which lasted from March 15 to April 28, SMIC accepted a total of 352,690,680 common shares or approximately 14.32 percent of 2GO’s total issued and outstanding common stock.
SMIC purchased the tendered shares at P5.16 billion, based on the tender offer price of P14.64 per common share of 2GO from BPI Capital Corp.’s fairness valuation report.
The tender offer allowed SMIC and Trident Investments Holdings Pte. Ltd. to own 98.94 percent of 2GO’s outstanding common stock, above the 95 percent necessary for a delisting petition, with SMIC owning 67.12 percent and Trident having 31.73 percent. 2GO's publicly held shares were then lowered to 1.06 percent from 15.39 percent of its total outstanding common stock.
2GO said SMIC and Trident requested its delisting due to its "low trading volume" of 16,053 daily average shares on the PSE in 2022, which prevented the company from raising funds or refinancing its current financial obligations.
In the first quarter of 2023, 2GO recorded an upturn in its attributable net income with P186.83 million, comparable to its P34.9-million net loss during the same period last year.
The DyBuncio-led group is the Philippines’ largest transportation, logistics, and distribution services provider established in 1949.
In its move to go private, 2GO said it will prioritize the expanding of its logistics services offerings for its customers.
“For 2023, 2GO continues its corporate governance initiatives and aims to expand and to further enhance its service offerings to customers and stakeholders. 2GO plans to achieve this through a more streamlined operation and collaboration within its business units,” the company said.
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