THE Securities and Exchange Commission (SEC) has approved 2GO Group, Inc.’s merger with parent company Negros Navigation Co., Inc. (Nenaco), the listed logistics company told the stock exchange on Wednesday.
2GO, which will be the surviving entity, said its merger with Nenaco will take effect by Jan. 1, 2019.
By Jan. 1, 2GO said all Nenaco’s assets and shares will be transferred to the company, and the estimated public float would be 11.91%.
“The resulting issued and outstanding capital stock of 2GO after the merger is 2,462,146,316,” 2GO said.
2GO announced the share swap deal in April, where all Nenaco shares are being converted into 2GO shares for a swap ratio of 0.26 share in 2GO per one Nenaco share.
The logistics company said the merger is meant to “simplify the corporate structure and to develop efficiencies and economies within the Group.”
“This is in line with 2GO’s efforts to streamline operations, reduce costs, and increase shareholder value,” it added.
In the first three quarters of the year, 2GO recorded a loss of P710.110 million versus an attributable net income of P71.285 million in the same period last year. It was dragged by a 7.15% decline in revenues for the nine-month period to P15.466 billion. — Denise A. Valdez