The Securities and Exchange Commission (SEC) has approved the amendment of Chelsea Logistics Holdings Corporation’s (CLC) articles of incorporation to allow the company to engage in other businesses in logistics and support its expansion program.
CLC, in a disclosure to the Philippine Stock Exchange on August 31, showed SEC’s certificate of approval of the amendment of the company’s second and seventh articles of incorporation, which amend its primary purpose and reclassified its 10 million common shares to non-voting, non-convertible redeemable preferred shares.
SEC’s approval, which was granted on June 18, follows the approval of CLC’s shareholders of the amendment to the articles of incorporation.
CLC’s second article of incorporation now states that the company’s primary purpose is the “development, management and operation of infrastructure facilities and systems and the business of building, rehabilitating, renovating, constructing, developing, operating, and maintaining such facilities and systems, including the commercial assets thereof and all allied business for the operation and maintenance of such facilities and systems.”
CLC said “there are a number of business opportunities being presented to the company for the operation of airports and ports, and also facilities which can be utilized in connection with its logistics business.” However, the company’s previous primary purpose did not allow it to undertake such business activities; thus, the amendment of the second article.
The company said expansion of its primary purpose allows it “to engage in other business in connection with its logistics business.”
CLC last February submitted an unsolicited public-private partnership (PPP) proposal for the bundled development, operation, and management of Davao and New Bohol (Panglao) international airports for P67 billion.
The seventh article, meanwhile, divided the company’s authorized capital stock of P2 billion into P1.990 billion common shares with a par value of P1 per share; and P10 million non-voting, redeemable preferred shares with a par value of P1 per share.
CLC said proceeds from the planned issuance of preferred shares will be used to support the company’s capital expenditure program for 2018 and 2019, which includes vessel acquisition, strategic mergers and acquisitions, and funding the shipping, transportation and logistics expansion projects.
CLCH president and chief executive officer Chryss Alfonsus Damuy earlier said the company “will pursue our expansion strategies and find best ways to complement the current business operations with the Build Build Build program of the Duterte administration.”
“We intend to participate in the development of the infrastructure facilities and systems in the country, which include but is not limited to airport and port development and operations and other related facilities,” Damuy added.
CLC, through its two wholly owned subsidiaries—Chelsea Shipping Corp. and Trans-Asia Shipping Lines, Inc.—is engaged in the shipping business. In 2017, it acquired Starlite Ferries, Inc. and logistics service provider WorkLink Services, Inc. It also has a 28.15% indirect economic interest in transport solutions company 2GO Group.
To date, CLC, through its wholly owned subsidiaries, has 16 tankers, 14 tugboats, 22 RoPax vessels, 11 cargo ships, and one floating dock, and operates eight RoPax vessels, five cargo ships, and 11 fastcraft.
