Metro Manila (CNN Philippines) — An ownership battle has erupted between logistics giant 2GO Group, Inc. and a prospective investor.
Udenna Corp., the parent firm of Phoenix Petroleum Philippines, Inc., claimed in a statement on Friday it should hold 21% of voting and 28% of beneficial interests in 2Go.
But 2GO officials issued an outright denial of the deal.
“Our stock and transfer book, our corporate records show that there has been no change in ownership,” 2GO Corporate Secretary Lawrence Tanlu said in a press briefing on Friday.
Udenna responded by filing a case against 2GO, asking the Manila Regional Trial Court to help “enforce [its] right as shareholder to participate in the management” of the listed logistics firm.
Tracing ownership
In September, Udenna chief Dennis Uy announced his company had acquired a stake in 2GO.
Udenna had bought out Dutch-based KGL Investments B.V., whose unit KGLI-NM Holdings, Inc. holds 60% voting and 40% beneficial stakes in Negros Navigation Co., Inc. (Nenaco).
Nenaco, in turn, owns about 88% of 2GO.
However, 2GO issued a clarification to the Philippine Stock Exchange right after Uy’s comments were published last month. It said it did not have “direct personal and official knowledge” of the transaction.
Officials held this line again on Friday, saying 2GO has a shareholders agreement, which stipulates that the company must be informed of any transfer of shares or change in ownership.
“No such information has reached the office of the corporate secretary or formally advised to [2GO President and CEO Sulficio O. Tagud, Jr.] himself,” 2GO Legal Counsel Lorna Kapunan said.
Open to investors
2GO also sought to dispel reports the company was in financial trouble. Its chief financial officer Jeremias Cruzabra told reporters he expected profits to surge about 60% to P1.7 billion this year.
“Our prospects are very good,” Cruzabra said.
The trade integration of the Southeast Asian bloc is bringing in more and more business to the Philippines, he explained. These companies need logistics providers to be able to operate and distribute their goods and services.
Nevertheless, 2GO is open to new investors — Udenna included — to help fuel its expansion.
“We’re not opposed to anyone coming in. This is a growing business and any opportunity from investors we welcome that, including that of Mr. Uy or whoever,” Cruzabra said.
2GO officials admitted the company had been in talks with Udenna, along with “many, many” other interested investors. But they insisted a deal was never finalized, and so Udenna would not be given seats in the 2GO board.
