Dennis Uy's Chelsea Logistics Sells Entire Stake in 2GO Group
Dennis Uy is exiting 2GO. Listed Chelsea Logistics and Infrastructure Holdings Corp., which the businessman chairs, has announced in a filing with the Philippine Stock Exchange that it is selling its minority stake in the logistics company. Chelsea owns about 31.73 percent of 2Go Group.
The shipping and logistics subsidiary of Uy’s Udenna Group, Chelsea Logistics will sell its stake in 2GO through its KGLI-NM Holdings Inc. Chelsea said it will complete the sale conditions within the next three months.
“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 President and CEO Chryss Alfonsus V. Damuy. “With our numerous group-wide initiatives currently being undertaken, we are confident that Chelsea will be best prepared and positioned to take advantage of the recovery of the industry as we move forward.”
According to the filing, the proceeds of the sale will be used to pay down the loan obtained for the acquisition of the shares.
2GO is a shipping, logistics and distribution services company that has been hard hit by the effects of the pandemic. Based on its financial reports, the company posted losses of over P1 billion as of September 2020, a huge spike from losses of P408 million during the same period the previous year.
Founded in 1949, 2GO started out as William Lines before it became WG&A following a merger in 1995 with Aboitiz Inc. and Gothong Lines. In 2004 the company became Aboitiz Transport System Corporation as a result of the buyout made by Aboitiz Equity Ventures, Inc. It changed its name again to the current 2Go Group Inc in 2012. In 2019, the company merged with Negros Navigation with 2Go as the surviving entity.
Uy acquired a stake in the company through his Udenna Investments in 2016.
In addition to logistics, Uy's Udenna Corp has interests in energy, food, education and hospitality, convenience stores, property and telecommunications.