2GO tender offer price pegged at P14.64/share

MANILA, Philippines — SM Investments Corp. (SMIC), the listed conglomerate of the Sy Group, has set an offer price of P14.64 for shares of 2GO Group Inc. as it buys out minority shareholders of the shipping and logistics company.

This will pave the way for the voluntary delisting of the 2GO Group.

SMIC’s board of directors has already approved the tender offer price and the offer period which will run from March 15 to April 28, 2023. The payment and settlement of the tendered shares will be from May 2 to 10.

In relation to the announcement of the tender offer price and other related details, 2GO requested for voluntary suspension of the trading of its shares at the PSE Monday.

At P14.64 per share for a total of 378.82 million shares, SMIC will have to shell out P5.5 billion to complete the tender offer. It is equivalent to a 15.38 percent stake.

The SM Group took over then money-losing 2GO from businessman Dennis Uy in 2021.

With SM Group at the helm, 2GO posted a net income of P312 million, a reversal of the losses incurred the previous year, on the back of P19.3 billion in revenues.

Group revenues grew by 25 percent as the company benefited from the country’s economic reopening and complete lifting of movement restrictions.

Shipping revenues rose by 67 percent as improving market conditions aided volume momentum in shipment of goods, while the holiday season boosted passenger numbers.

Logistics and other services revenue grew 30 percent, led by the growth in cold chain services, forwarding, ecommerce fulfillment and its international courier business.