Following the exit of businessman Dennis Uy from leading Philippine logistics provider 2GO Group Inc., Singapore-based private equity firm Archipelago Capital Partners has come in as the new strategic partner of the controlling conglomerate, SM Investments Corp. (SMIC) Through its investment entity Trident Investments Holdings, Archipelago acquired 31.73 percent of 2GO, equivalent to 781.12 million shares valued at P6.6 billion.
The deal followed SM Investment’s buyout of Uy’s stake in 2GO that increased its interest from 30.53 percent to 52.85 percent, making 2GO its subsidiary.
“We welcome the investment of Archipelago in 2GO. Archipelago will bring to 2GO its broad regional knowledge and best practices in the logistics industry,” 2GO chair, president and CEO and SM Investments president Frederic DyBuncio said in a press statement on Friday.
“We see vast potential in the Philippine logistics market and believe that 2GO is uniquely positioned to realize the opportunities here. We are very excited and proud to become part of 2GO. We look forward to working closely with 2GO and SM Investments to accelerate initiatives to enable 2GO to become the preferred integrated logistics provider in the Philippines,” said Archipelago CEO Jovasky Pang.
With this buy-in deal, Archipelago obtained three seats in 2GO’s nine-member board. The following were elected as new directors representing Archipelago: logistics industry veterans Stephen Ly, Chan Kiat and Sam Ang. They replaced Uy, Ma. Concepcion de Claro and Chryss Alfonsus Damuy, who previously represented Uy-led Udenna Corp.
Archipelago is a private equity investment firm which invests in promising small to mid-market companies in Southeast Asia, focusing on consumer goods and services, financial services, industrial and logistics. SM Investments also completed on June 3 its acquisition from KGLI-NM Holdings Inc. of an additional 22.36 percent stake in 2GO via a special block sale.
Article and Photo originally posted by Inquirer last June 5, 2021 5:08am and written by Doris Dumlao-Abadilla.
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