Davao-based businessman Dennis Uy has finalized a deal to acquire a company developing a $1-billion, 177-hectare logistics hub called Global Gateway Logistics City in Clark City.
The deal has been approved by the Philippine Competition Commission (PCC), the country’s antitrust body mandated under the Philippine Competition Act to review mergers and acquisitions worth at least P1 billion to ensure that these deals would not prejudice the interest of consumers.
The PCC announced its approval of the acquisition on Thursday night.
Clark Global City Corp., an affiliate of Uy’s holding firm Udenna Corp., acquired the entire capital stock of GGDC Holdings, the majority shareholder of Global Gateway Development Corp. based in Cayman Islands and owner of the leasehold rights to the land where Global Gateway Logistics City is located.
Udenna bought the project from Kuwaiti fund KGL Investment Co. (KGLI), which started the project.
The project is estimated to be worth $1 billion, with further upswing seen in case land prices increase.
Other industry sources said the logistics hub had been in the market for the last three years. Another source said that Global Gateway Logistics had been in existence for many years but development and locator take-up was slow.
The new investment followed Uy’s earlier acquisition of Enderun Colleges, his takeover of leading logistics firm 2GO Group Inc. and the stock market debut of Chelsea Logistics. Udenna has also obtained a provisional license from the state-controlled Philippine Amusement and Gaming Corp. (Pagcor) to develop a $300-million integrated gaming resort in Mactan, Cebu.
Uy built his fortune out of petroleum trading and distribution under Phoenix Petroleum Philippines Inc.