By Arra B. Francia, Reporter
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, 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 2GO share equivalent to one Nenaco share.
The executive declined to disclose more details on the transaction.
The company earlier said the merger is in line with its efforts to streamline operations, reduce costs, and increase shareholder value.
The merger will still be subjected to the final decision and approval by the company’s board.
2GO Chief Financial Officer William Charles Howell noted that the company is “very optimistic” in its prospects for the year.
“The country is growing, the GDP (gross domestic product) is strong, so as the country grows we are very optimistic. We are providing the end-to-end logistics solution through shipping. It’s something that the country needs for growth,” Mr. Howell said.
Mr. Howell said the company is currently focused on growing the business through introduction of new routes and services.
“We are studying acquisitions of new ships… but actually right now our focus is to grow within our current size. So we’re studying new routes, possible services,” Mr. Howell said.
At the same time, Mr. Santos said 2GO is currently studying the effects of the six-month closure of Boracay island starting April 26, given that it has routes in Kalibo, Aklan.
2GO narrowed its net loss to P310 million in 2017, against the P344-million net loss in the year before, following a 13% growth in revenues to P21.6 billion.
Shares in 2GO lost 30 centavos or 1.67% to close at P17.70 each at the stock exchange on Thursday.