Holding company SM Investments Corporation has acquired a minority share in integrated transport solutions provider 2GO Group, Inc. as SMIC starts to venture into the logistics business.
In a statement, SMIC said it has completed acquiring a minority stake in 2GO via a 34.5% stake in the latter’s parent company. 2Go, in a regulatory disclosure, also announced SMIC’s acquisition.
“We are pleased with this opportunity to invest in a fast growing, dynamic logistics business. It will benefit from, as well as contribute to, the country’s economic progress especially as development spreads to the provinces,” SMIC president Harley Sy said.
Earlier this month, Sy said the group is optimistic about broader regional growth with the government’s plans for infrastructure, agriculture, and tourism development.
The Philippines’ largest integrated supply chain operator, 2GO has businesses in shipping, freight forwarding, warehousing, and express delivery.
SMIC is the holding company of the SM Group of Companies and engages in businesses through its subsidiaries. In retail, it operates through The SM Store, SM Supermarkets, SM Hypermarkets, SaveMore, and Waltermart Supermarket, Inc.; in property through SM Prime Holdings, Inc.; and in financial services through BDO Unibank, Inc. and the China Banking Corporation. It also runs other business operations including Belle Corporation, Atlas Consolidated Mining & Development Corporation, and The Net Group.
The entry of SMIC comes after the shakeup in 2GO’s board that led to the resignation of seven members early this year due to “severance of relationship with the group.” New 2GO board members and officers were elected last February.
The change in board membership stemmed from a court battle between Dennis Uy of holding firm Udenna Corporation and 2GO’s parent firms, Negros Holdings Management Corp. and KGLI-NM Holdings Inc., which ended in arbitration.
Udenna is now one of 2GO’s new directors.
Image courtesy of khunaspix at FreeDigitalPhotos.net
