SM Investments Corp., the holding company of tycoon Henry Sy, finalized the acquisition of a 34.5-percent stake in Negros Navigation Co., the parent firm of logistics provider 2Go Group Inc., for $124.5 million.
SMIC said in a disclosure to the stock exchange the acquisition of Nenaco’s shares “will not affect the business, financial and operation” of the company.
Nenaco, which is identified with the Tagud family, owns 88.3 percent of 2Go.
2Go’s ultimate parent company is Negros Holdings and Management Corp.
2Go is the country’s largest integrated supply chain operator whose businesses include shipping, freight forwarding, warehousing and express delivery services.
SMIC president Harley Sy, a son of the tycoon, earlier said the company saw an opportunity to invest in a fast growing, dynamic logistics business.
Sy said the group was “optimistic about broader regional growth with the government plans in infrastructure, agriculture and tourism.”
SMIC has interests in malls, banks, hotels, condominiums and infrastructure.
2Go reported a net income of P981.9 million in the first nine months of 2016, up 7 percent from P914.97 million in 2015.
Consolidated revenues grew 19 percent to P14.42 billion in the nine-month period last year from P12.12 billion a year ago, on continuous expansion of the non-shipping group which grew 23 percent in the period.