CHELSEA Logistics Holdings Corp., a company led by Davao businessman Dennis Uy, on Wednesday said it will not pursue its P5-billion preferred shares offering at the Philippine Stock Exchange.
“The company has decided not to proceed with the offering of 3 million preferred shares with an oversubscription option of up to 2 million preferred shares, and has accordingly withdrawn its application for listing of these shares,” the company said in its disclosure.
No reason was given for the pullout of the said offering.
In September last year, the company filed its registration statement to sell the 5 million preferred shares that are nonvoting, nonconvertible and nonparticipating, for P1,000 apiece.
About P2 billion of the proceeds will be used for its acquisitions in its shipping and logistics companies, land and development of logistics facilities, and vessels and vessel equipment.
Firms led by Uy, however, will still be busy with the PSE this year led by the follow-on offering of his gambling unit PH Resorts Group Holdings Inc., formerly Philippine H2O Ventures Corp.
Uy’s holding firm Udenna Corp. is also being eyed to be listed this year, either through backdoor listing or initial public offering.
The Philippine Competition Commission earlier resolved that it will not take further action on the acquisition by Chelsea Logistics Holdings Corp. of 2 million common shares of Trans-Asia Shipping Lines Inc.
“Among the conditions in the undertaking of the company are its agreement to price monitoring of passenger and cargo rates, submission of semi-annual reports on all trips of passenger and cargo services in the critical routes, explanation of all extraordinary rate increases in the critical routes, and maintenance of service quality of passenger and cargo routes based on customer satisfaction index developed by third-party monitor,” the company said.
Income of Chelsea Logistics, which also holds the country’s third telecommunications provider, for the three quarters of 2018 fell by more than half to P83.76 million, from the previous year’s P200.74 million.
Revenues rose to P3.7 billion from the previous P2.3 billion, a jump of more than 60 percent. Money from its shipping businesses grew by half to P3.5 billion, while its revenues from logistics services grew by 9 percent on a pro-forma basis.
The company’s passage segment recorded the highest revenue growth at 114 percent, generating P727 million during the first nine months of 2018.
Revenues from the larger contributors, tankers and tugs, and freighter segments were 17 percent and 95 percent higher than the previous year, respectively.
“We are expecting our logistics business to gain more momentum once we have accomplished our expansion programs, including additions to warehousing and distribution facilities and equipment,” company president and CEO Chryss Alfonsus V. Damuy said.