Chelsea Logistics Holdings Corp. (CLC) has signed a memorandum of understanding (MOU) to buy 100% shares of stocks from the owners of ferry company Starlite Ferries, Inc. (Starlite) and its subsidiaries.
CLC in a statement said the proposed transaction is pending due diligence by CLC and Starlite, and is subject to regulatory approval by the Philippine Competition Commission (PCC).
Starlite Ferries and its subsidiaries have 14 vessels, of which five are roll-on/roll-off (ro-ro) passenger vessels that were acquired brand-new in 2016 and 2017. Starlite services the ports of Batangas, Calapan, Puerto Galera, Roxas, and Caticlan. With its brand-new vessels, Starlite has been planning to expand further to other ports of operation.
“The planned acquisition will bring us a step closer to fulfilling our commitment to growth in order to realize more value for our stakeholders, from the investors to the consumers,” CLC chairman Dennis A. Uy said.
Once all the processes and regulatory approvals are obtained, the acquisition will be financed by the net proceeds from CLC’s initial public offering (IPO) of common shares.
CLC has earmarked P1.78 billion of the IPO for fleet expansion; P245 million for the purchase or upgrade of ports, port facilities, containers, machinery and equipment; P3.20 billion for acquiring shipping and logistics firms; and P278 million for general corporate purposes.
“By modernizing and expanding our operations, we can provide better shipping and logistics solutions as well as make our country more competitive in capturing the increasing trade opportunities in Southeast Asia,” Uy said.
CLC last March expanded its operations by acquiring a 28.15% indirect economic interest in integrated transport solutions provider 2Go Group, Inc., where Uy now sits as chief executive officer and president.
CLC currently has a fleet of 11 tankers, eight tugboats, seven ro-ro vessels with passenger accommodation (RoPax), four barges, and three cargo ships. 2Go, meanwhile, has eight RoPax, 10 fastcraft, and eight cargo vessels.
