SMIC now majority shareholder of 2GO

Photo courtesy of SM Investments Corp.
  • SM Investments Corp. has completed acquisition of 22.36% shares of 2GO Group
  • The purchase increases SMIC’s stakes in the logistics service provider to 52.85%
  • Trident Investments Holdings Pte. Ltd. also purchased a total of 781.122 million common shares of 2GO, representing a 31.73% stake
  • Udenna Group representatives on 2GO’s Board, including Dennis Uy, Ma. Concepcion de Claro, and Chryss Alfonsus Damuy, have resigned
  • 2GO and SMIC president Frederic DyBuncio was appointed chairman, replacing Uy

SM Investments Corp. (SMIC) has completed acquisition of 22.36% shares of 2GO Group, Inc., increasing its stakes in the logistics service provider to 52.85% and making it a subsidiary.

In a regulatory disclosure, SMIC said it completed on June 3 its acquisition from KGLI-NM Holdings, Inc. (KGLI-NM) of 550.558 million common shares, representing 22.36% of 2GO, via a special block sale through the facilities of the Philippine Stock Exchange (PSE).

On the same date, Trident Investments Holdings Pte. Ltd. purchased 230.564 million common shares of 2GO from KGLI-NM and 550.558 million common shares from China-ASEAN Marine B.V., or a total of 781.122 million common shares, representing about 31.73% of 2GO. The sale transactions were also transacted via special block sales through PSE.

Trident is an entity directly controlled and majority owned by Archipelago Asia Focus Fund II Pte Ltd, a company incorporated in Singapore and indirectly controlled by Archipelago Capital Partners Pte. Ltd. Archipelago is a Singapore-based private equity firm licensed by the Monetary Authority of Singapore that invests across Southeast Asia.

Following the completed acquisition, Udenna Group representatives on 2GO’s Board of Directors resigned effective June 3, 2GO said in a separate disclosure.

Those who resigned are Dennis Uy as chairman and director, and Ma. Concepcion de Claro and Chryss Alfonsus Damuy as directors.

On the same date, the 2GO Board appointed Frederic DyBuncio, the current president and CEO of both 2GO and SMIC, as chairman of the Board.

Also elected were Stephen Ly, Chan Kiat, and Sam Ang Sim Mein as non-independent directors who will serve the remaining unexpired terms of the outgoing directors.

Ly served as the managing director of DHL Global Forwarding-Singapore from 2015 to 2020, and was part of the Deutsche Post DHL Group from 2003 to 2020.

Chan has been the managing director/partner of Archipelago Capital Partners since 2016. He previously served as executive vice president for investments of Singapore Post Ltd from 2012 to 2016.

Sam was group CEO of Quantium Solutions International, the 3PL arm of Singapore Post, as well as the CEO of Famous Holdings, the freight forwarding business of Singapore Post, from 2015 to 2017. For the same period, he served as an executive vice president of Singapore Post. Prior to this, he was the CEO of DHL Global Forwarding Southeast Asia from 2006 to 2015.

READ: Chelsea Logistics sells total 2GO stake to SM group

Last March, Chelsea Logistics and Infrastructure Holdings Corp. (CLC), a company under the Udenna Group, disclosed it had signed agreements to sell to SMIC its entire stake of 31.73% in affiliate 2GO Group.

CLC said the divestment was made so it “will not be impacted by 2GO losses, which will aid the company in recovering from the current COVID-19 pandemic.”

The divestment came just a few years after Udenna in September 2016 obtained 21% of shares of Netherlands-based KGL Investment B.V., which owned about 60% of KGLI-NM. In turn, KGLI-NM controlled shipping firm Negros Navigation Co. Inc. (NN), which owned 88.31% of 2GO.

READ: SM Investment enters logistics through 34.5% stake in 2GO

In 2017, CLC acquired a 28.15% indirect economic interest in 2GO. In the same year, SMIC also acquired shares in 2GO from NN. In 2019, NN was merged with 2GO, with 2GO as the surviving entity.