SM group starts tender offer for 2Go shares

The Sy family’s SM Investments Corp. launched a buyout offer to minority shareholders of 2Go Group Inc. after taking a controlling stake in the company following the exit of Davao-based businessman Dennis Uy’s Chelsea Logistics and Infrastructure Holdings Corp.

SM said it was prepared to acquire the 1.16 billion 2Go shares, or 47.15 percent of the logistics group, held by other stockholders for P8.50 per share. The offer will run from March 22 to April 21, its tender offer report to the Philippine Stock Exchange showed.

A tender offer is a mandated exercise that gives minority shareholders the chance to exit at the same terms as those of the buyout transactions.

Last Friday, Chelsea said it was selling its entire 31.73-percent stake in 2Go at P8.50 a share while SM announced separately it would increase its 30.49 -percent stake to a “at least a majority” of 2Go.

The Inquirer reported last week that SM was buying Chelsea’s stake for P6.6 billion but a source on Monday clarified Chelsea had agreed to sell its 2Go shares to two buyers.

The buyers were SM and a Singapore-based entity called Trident, which is expected to become 2Go’s second-largest shareholder after SM once the company’s ownership structure is finalized, the source said.

It was not clear if Trident and SM were related entities. However, SM’s tender offer filing on Monday implied they were separate groups.

According to the report, SM’s share purchase deal with Chelsea covered just 550.56 million shares or 22.36 percent of 2Go, for a total of P4.68 billion.

Chelsea’s remaining shares would be sold to Trident, the source said.

After that purchase, SM’s stake will rise to 52.85 percent, making it 2Go’s controlling shareholder.

SM is one of the country’s largest companies and the main holding group of the Sy family’s property, banking and retail businesses.

In its report, SM said the additional investment “is part of its plan to expand its logistics business, complementing 2GO’s plan to achieve operational goals through synergies and best practices from its significant stockholders.”

The source said with the exit of Uy’s Chelsea, 2Go would be owned by SM (52.85 percent), Trident (31.73 percent) and ES Consulting (3.5 percent) while public float will be11.92 percent.