MANILA, March 19 (Reuters) - A Philippine tycoon with close
ties to President Rodrigo Duterte is selling his shares in
logistics firm 2GO Group 2GO.PS to conglomerate SM Investments
Corp SM.PS in a 6.6 billion pesos ($136 million) buyout, the
companies said on Friday.
Under Duterte's presidency, the business empire of tycoon
Dennis Uy has enjoyed explosive growth through an acquisition
binge, fuelling concerns over ballooning debts.
In a disclosure, Uy's Chelsea Logistics and Infrastructure
Holdings Corp. CLC.PS agreed to sell to SM Investments its
31.73% stake in 2GO Group at 8.50 pesos per share, an 11.9%
discount to its closing price on Thursday.
"With the divestment, Chelsea will not be impacted by 2GO
losses, which will aid the company in recovering from the
current COVID-19 pandemic," said Chelsea CEO Chryss Alfonsus
Damuy. Proceeds from the share sale will be used to pay down the
loan obtained when Chelsea acquired 2GO in 2016.
Chelsea's divestment in 2GO, which is into shipping, courier
and ferry travel service, will be completed within the next
three months.
SM Investments, which acquired minority shares in 2GO in
2017, said it will also offer to buy out other shareholders. SM
Investments is owned by the Sy family, ranked by Forbes as the
richest in the Philippines, and it is involved in property,
retail, sprawling shopping malls and banking.
($1 = 48.6550 Philippine pesos)