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2GO to merge with parent Nenaco through share swap deal

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August listing targeted by Chelsea Logistics
The accounting mess of 2GO Group, Inc. is not expected to unduly affect Chelsea Logistics Holdings Corp.’s IPO. -- BW FILE PHOTO

2GO Group, Inc. is merging with its parent Negros Navigation Company, Inc. (Nenaco) through a share swap deal.

In a disclosure to the stock exchange on Thursday, April 5, 2GO said its shareholders approved its internal restructuring program that involves the merger of Nenaco with 2GO. The listed firm will be the surviving entity after the transaction.

2GO Vice President for Corporate Planning Jovito U. Santos told reporters that all Nenaco shares will be converted into 2GO shares, with 0.26 Nenaco share equivalent to one 2GO share.

The executive did not disclose further details on the transaction.

The company earlier said that the merger is in line with its efforts to streamline operations, reduce costs, and increase shareholder value.

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The merger will still be subjected to the final decision and approval by the company’s board.

Shares in 2GO lost 30 centavos or 1.67% to close at P17.70 each at the stock exchange on Thursday. — Arra B. Francia

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