The Philippine Stock Exchange on Wednesday approved the P8-billion initial public offering of Chelsea Logistics Corp., a company controlled by Davao City-based businessman Dennis Uy.
The PSE approved Chelsea’s sale of 546,593,000 new common shares at a maximum price of P14.63 each, or P8 billion in total.
“We thank the PSE for believing in the soundness of our business and for recognizing our potential to help accelerate the Philippine economy’s growth by delivering its logistics needs,” Uy said.
The company may now proceed with its offer period scheduled on July 24 to 31 in time for the listing and commencement of the trading of its shares on the main board of the PSE under the ticker symbol “CLC” on Aug. 8.
Chelsea is looking to increase its stake in logistics firm 2Go Group Inc. by buying the remaining 20 percent shares in KGLI-NM Holdings Corp. held by former management of Negros Navigation led by 2Go president Sulficio Tagud.
The planned acquisition, if approved by the Philippine Competition Commission, could increase Uy’s direct ownership in 2Go to 35.3 percent from the current 28.1 percent, triggering the mandatory tender offer.
Based on its prospectus, CLC will allot P2.2 billion, out of the P8-billion expected proceeds from the IPO, to finance the acquisition of 20-percent stake in KGLI-NM held by Nenaco Holdings Management Corp.
CLC’s Udenna Investments currently has an 80-percent economic interest in KGLI-NM, which holds 39.85 percent in Negros Navigation Co., which in turn owns 88.3 percent of 2Go Group Inc.