DENNIS UY SELLS 2GO TO SM GROUP
SM Investments Corp. has gained control of 2Go Group Inc., owned by Davao-based businessman, Dennis A. Uy.
Four years ago, SM took a minority position in 2Go, and with the buy-out, the Sy family’s SM will own more than 62 percent of the 72-year-old logistics group, a stock exchange filing on Friday showed.
With the purchase of the 31.7-percent 2Go stake held by Uy’s Chelsea Logistics and Infrastructure Holdings Corp. for P8.50 a share or about P6.6 billion, the sale is expected to be concluded in three months.
At the same time, the deal will shore up Uy’s balance sheets. Its financial losses in 2Go has risen with the COVID-19 pandemic.
2Go is a leading name in logistics, providing cargo and passenger shipping, warehousing distribution and courier services, and with the SM buy-out, the Sy conglomerate can bankroll its needs for 2Go in terms of shipping its businesses' requirements.