AEV seals P400-million purchase of ATS logistics businesses

MANILA, Philippines - Aboitiz Equity Ventures Inc. (AEV) sealed yesterday the purchase of the logistics businesses of Aboitiz Transport System Corp. (ATS) for nearly P400 million.

In a disclosure to the Philippine Stock Exchange, AEV said it closed the purchase of 62.5 percent interest each in Aboitiz Jebsen Bulk Transport Corp., Aboitiz Jebsen Manpower Solutions Inc. and Jebsen Maritime Inc. for P355.91 million.

ATS likewise closed the sale of its 50 percent equity in Jebsen Management (BVI) Ltd. to Aboitiz & Co. (ACO) for P44 million.

AEV and ACO will pay the full price on or before Jan. 12, 2011.

The acquisition is part of the Aboitiz family’s divestment of its shipping business to rival Negros Navigation Co. (Nenaco) for $81.1 million, a deal seen to create the country’s biggest shipping company.

The Aboitiz Group, through listed investment holding firm AEV, owns 77.24 percent of ATS while ACO holds 15.96 percent, for a combined 93.2 percent.

With the purchase, Nenaco is required to make a tender offer to other investors owning the remaining 6.8 percent of ATS at the same price offered to majority shareholders.

The tender offer, when completed, will value the equity of ATS at $105 million, which is equivalent to approximately $0.043 each share.

The sale, which is expected to be consummated on or before Jan. 10, 2011, includes all of ATS’ shipping businesses including Superferry, Supercat, Cebu Ferries and 2Go.

Only the joint venture firms with the Jebsen Group of Norway which are engaged in ship management, manning and crew management and bulk transport, will be spared, AEV chief finance officer Stephen G. Paradies said in a press briefing yesterday.

AEV is the publicly-listed Aboitiz holding company that handles Aboitiz Power, UnionBank, City Savings Bank, Aboitiz Transport System, Pilmico Foods Corp. and Fil-Am Foods.

Paradies said proceeds after taxes and related costs will be distributed to existing ATS shareholders by means of a special cash dividend equivalent to P0.15 per share to all ATS stockholders of record as of Dec. 15, 2010, to be paid on Jan. 12, 2011.

Other proceeds from the sale will be used to support the expansion of its power, banking and food businesses.