CHELSEA LOGISTICS Holdings Corp. (CLC) on Monday said it is acquiring Starlite Ferries, Inc., as it continues to expand its operations.
In a statement, CLC said it signed a memorandum of understanding with Starlite owners regarding its offer to buy 100% of the shares of Starlite and its subsidiaries.
However, CLC said it will conduct due diligence on Starlite before the deal is completed. The transaction will also require approval by the Philippine Competition Commission.
“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 was quoted as saying in a statement.
Starlite and its units have 14 vessels, including five new roll-on, roll-off (RoRo) passenger vessels that were acquired in 2016 and 2017. It uses its RoRo vessels at the ports of Batangas, Calapan, Puerto Galera, Roxas and Caticlan.
CLC did not disclose the transaction amount, but said it will use proceeds from its initial public offering (IPO) for the acquisition.
The company had earlier set aside P3.20 billion of the IPO proceeds for acquisition of shipping and logistics firms, among others.
“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,” Mr. Uy said.
In March, CLC acquired a 28.15% indirect economic interest in 2GO Group, Inc.
Shares in CLC added 6 centavos or 0.59% to close at P10.30 each on Monday.
