Tagud named CEO of Aboitiz Transport Systems Corp.
MANILA, Philippines — Former Negros Navigation Co. Inc. (Nenaco) chairman Sulficio Tagud has been named CEO of the Aboitiz Transport Systems Corp. (ATS) as part of the management reshuffle following the integration of both firms’ operations.
Tagud, credited for transforming Nenaco from a debt-ridden shipping firm to a profitable industry giant, was appointed to his new post by the company’s board in a resolution on Tuesday.
Also included in the resolution was ATS vice-chair Francis Chua’s promotion to the position of chairman.
The company said this was part of recent shakeup in the company’s management. ATS, which will change its name to ATS Consolidated Inc., was acquired by Nenaco last December for P4.28 billion.
Even if it is the acquired company, ATS is a bigger company in terms of the number of ships it operates and yearly revenues. The two companies now make up the country’s largest shipping group.
Last June, former ATS executive Ramon Villordon was named president of both Nenaco and ATS.
Prior to assuming his new post, Villordon served as head of the Supercat and Cebu Ferries brands, which were operated by ATS. “The Board passed the resolutions as part of the implementation of its integration plan with its parent company, Nenaco,” ATS said in its disclosure.
Earlier, Villordon said the group’s revenues would likely hit P18 billion by yearend, up by 25 percent from last year’s P14.4 percent. The increase would come mainly from the return of ATS ships that were “dry-docked” for maintenance for the most part of 2010.
Nenaco was able to buy ATS thanks to an equity investment from China-Asean Marine BV, a private equity fund sponsored by China Export-Import Bank.
Excluded from the sale were the Aboitiz family’s interests in Aboitiz Jebsen Bulk Transport Corp., Aboitiz Jebsen Manpower Solutions Inc. and Jebsen Maritime Inc. The three firms, which are joint ventures between the Aboitiz family and Norwegian Jebsen group, were acquired by holding firm Aboitiz Equity Ventures.
Nenaco’s parent firm KGLI-NM Holdings Inc., a company owned by Kuwaiti Gulf Link Investments, in 2009 made an offer to buy the Aboitiz family’s century-old transport business. However, the deal fell through after the Kuwaiti group’s finances were strained by the recent financial crisis.
