The Aboitiz Group has decided to sell its entire stake in shipping and logistics firm AboitizTransportSystems Corp. (ATS) to KGLI-NM Holdings Inc. for an estimated P4.65 billion.
The sale, comprising 2.28 billion shares of ATS, is subject to a due diligence audit to be conducted by KGLI-NM, which is 60 percent owned by Negros Holdings and Management Corp. (NHMC) and Dutch company KGL Investment BV (KGLI).
Negros Holdings is a local holding firm owned by the present management team of Negros Navigation Inc. (Nenaco) led by its chairman Sulficio Tagud Jr.
In a disclosure to the Philippine Stock Exchange, ATS parent firm Aboitiz Equity Ventures Inc. (AEV) said its board unanimously voted to accept the unsolicited offer of KGLI-NM to purchase all of the Aboitiz Group’s shareholdings in ATS, totaling 93.03 percent. The purchase price would be computed based on ATS’s equity value of P5 billion or equivalent to P2.044 per share.
ATS shares jumped nearly 40 percent yesterday, closing at P1.90 on trades worthP1.66 million.
AEV owns 77.1 percent of ATS, equivalent to 1.89 billion common shares of the listed shipping company while Aboitiz & Co. Inc. (ACO) holds 390.32 million common shares, representing 15.93 percent of ATS. The balance of 6.97 percent is held by the public.
ACO is the private holding company of the Aboitiz family and is AEV’s largest shareholder.
The agreement also provides that should KGLI-NM decide toproceed with the purchase, it shall also undertake a tender offer of the sharesowned by the minority shareholders at the same terms offered to the AboitizGroup.
KGLI-NM has until November 22 this year to notify both AEV and ACO whether it shall pursue the transaction. “Any definitive share purchase agreement will be executed on closing date which is expected to occur on January 15, 2009, unless shortened or extended by the parties,” AEV said.
Except for the joint venture businesses in ship management, manning and crewmanagement, and bulk transport of the Aboitiz Group with the Jebsen Group of Norway, the planned acquisition will include all the shipping and logistics businesses of ATS, AEV said.
KGLI is beneficially owned by the Kuwaiti-based KGL Investment Co., which has investments in port and port-related businesses and other logistics related businesses in the Philippines through the establishment of an air transportation logistics complex in Clark Field, Pampanga.
ATS is primarily known for the transport brands SuperFerry, SuperCat and Cebu Ferries. It has long been trying to stay afloat in the highly competitive shipping business amid stiff competition from the airlines which have been offering lower fares for travelers.
In the first half this year, ATS incurred a net loss of P25.5 million due to lower revenue from its international charter business and to debt repayments.
Consolidated revenues dropped 12 percent to P 5.7 billion, mainly because earnings from the international charter business under unit Jebsen Management BVI Ltd. declined because of unfavorable market conditions