Chelsea Logistics Holdings Corp.
sana price nya between 7-7.8 nextweek .... layo pa sweldo ...lolz nut nut nut
Bullish or Bearish, I will Buy .... Autem Neque Me Invito Tactiost! \m/
9-18 raising ulit

Chelsea selling P5 billion worth of preferred shares

Chelsea Logistics Holdings Corp. is raising up to P5 billion from the sale of preferred shares to fund expansion and acquisition plans.

Chelsea Logistic said in a filing with the Securities and Exchange Commission it would sell up to 3 million preferred shares and another 2 million preferred shares to cover oversubscription at P1,000 apiece.

The preferred shares are non-voting, non-convertible and non- participating.

The company tapped China Bank Capital as the sold issue manager and book runner for the fundraising activity.

Chelsea Logistics said it would allot P2 billion in proceeds to fund acquisitions of shipping and logistics companies, land and development of logistics facilities and vessels and vessel equipment.

The company said it was interested in acquiring a company that provides shipbuilding and repair services. It is also looking to acquire companies engaged in passenger and cargo operations.

Portion of the proceeds will be used to complete the acquisition of Southwest Gallant Ferries Inc. and Southwest Premier Ferries Inc.

The company’s wholly-owned subsidiary Starlite Ferries Inc. obtained the Philippine Competition Commission’s approval to acquire SGFI and SPFI.

The company will also spend P1.8 billion to purchase and develop a 25,335-square-meter property in Taguig City for a multi-level logistics facility, while another P1.6 billion would be allocated to acquire additional vessels and equipment.

The company, through unit Fortis Tugs Corp., also plans to acquire additional tugboats for deployment in Cebu, Davao, Villanueva, and Cagayan de Oro ports.

The fundraising activity through the equities market will be Chelsea Logistics’s first after it raised P5.9 billion from an initial public offering in 2017. 

Chelsea Logistics posted a net income of P390 million in the first half of 2018, up 29 percent from P278 million recorded in the same period last year.

Revenues reached P2.7 billion, bulk of which came from shipping activities which grew 37 percent to P2.6 billion.

Chelsea Logistics has 16 tankers, 14 tugboats, 22 RoPax vessels, 11 cargo ships, and one floating dock, while 2GO Group operates eight RoPax vessels, five cargo ships and 11 fastcraft.



...try ulit! Tongue

Chelsea re-files bid with PCC to buy Trans-Asia

Chelsea Logistics Holdings Inc. said it will wait for the approval of its planned acquisition of Trans-Asia Shipping Lines Inc. from the Philippine Competition Commission before proceeding with the offering of P5 billion in preferred shares.

Chelsea Logistics vice president for finance Ignacia Braga IV said in a recent interview the company re-filed its plan to purchase Trans-Asia, a deal earlier voided by the country’s anti-trust body.

Braga said Chelsea Logistics wants to obtain PCC approval of the deal first before proceeding with the preferred shares offering, which is also pending with the Securities and Exchange Commission and the Philippine Stock Exchange.

The PCC in July canceled Chelsea CLC’s acquisition of Trans-Asia for failure to notify the antitrust body of the 2016 deal, even though the size of the transaction fell under the compulsory notification threshold of P1 billion at that time.

The PCC also imposed a P22.8-million fine on Chelsea Logistics and parent Udenna Corp. led by businessman Dennis Uy.

Braga said CLC recently filed a new notification with the PCC on the planned acquisition of Trans-Asia. He said the new notification would be subject to review again by the PCC.
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Chelsea Logistics said it was not required to notify the deal with PCC since Trans-Asia’s net asset value at the time of the sale was “way below” the P1-billion threshold.

Chelsea Logistics in August filed with the SEC an application to raise as much as P5 billion from the sale of preferred shares to fund expansion and acquisition plans.

The company plans to sell up to 3 million in preferred shares plus another 2 million to cover oversubscription at a price of up to P1,000 apiece. The preferred shares are non-voting, nonconvertible and non- participating.

The company tapped China Bank Capital as the sold issue manager and book runner of the fundraising activity.
Chelsea Logistics through its wholly-owned subsidiaries has 16 tankers, 14 tugboats, 22 RoPax vessels, 11 cargo ships, and one floating dock, while the 2GO Group operates eight RoPax vessels, five cargo ships, and 11 fast craft.


Samahan kita dito Boss. Try na din ako.
...... gold is black......

...may news si CLC blackgold Tongue

Chelsea Logistics allocates over $100M for fleet expansion

CHELSEA LOGISTICS Holdings Corp. (CLC) is allocating more than $100 million for the expansion of its fleet as it expects six passenger vessels to be delivered in the next three years.

The listed company inaugurated on Friday two new ships — the M/T Chelsea Providence oil tanker and the M/V Salve Regina passenger vessel at the Manila North Harbour Port.

“Meron pang dalawa [There will be two] of this size, another $14 million. Then the (next) batches will be around $20 million each. Then the next two, ‘yung mas malaki [the bigger ones], will be another around $30 million each,” CLC President and Chief Executive Officer Chryss Alfonsus V. Damuy told reporters on Friday.

He said the company is adding more roll-on, roll-off (RoRo) passenger vessels to its existing fleet of 88 ships to cater to its underserved routes, and those routes that still utilize old vessels.

“There is a number of routes na underserved pa [that are still underserved]. It’s either underserved or served by vessels na [that are] due for phase out…. Isa ‘yun sa mga area na tinitingnan natin [That’s one of the areas we’re looking at] that we will replace it with ships like this or smaller sizes,” he said.

Mr. Damuy said the other six passenger ships it ordered will be delivered in twos per year, starting in November.

Memorandum Circular No. 2018-05 from the Maritime Industry Authority (MARINA) limits the age of registered cruise ships to be at most 20 years old. Mr. Damuy said around seven to eight vessels of CLC will be due for phase out in the next five years because of this.

“[The] new vessels will either replace the one that will be phased out (or will be used for) expansion to other new routes,” the CLC president said.

Aside from inter-port connections in Visayas and Mindanao, CLC is eyeing some routes including those from Batangas to Iloilo and Bacolod.

Mr. Damuy said at present, CLC’s share of the passenger market stands at around 30%. The company hopes to increase its share with the modernization of its fleet.

The company’s existing fleet is comprised of 16 tankers, 22 RoRo passenger vessels, 11 cargo vessels, 14 tugboats and one floating dock, operating across its units Chelsea Shipping, Starlite Ferries, Trans-Asia Shipping Lines, Inc. and Fortis Tugs. Its investee, the 2GO Group, Inc., has eight RoRo passenger vessels, five cargo vessels and 11 fastcrafts.

CLC reported a 29% increase in its net income during the first six months of the year to P360 million on the back of higher revenues from its shipping business.



...nagplano na pala dati tapos na-oppose, ngayon tuloy na kasi Duterte ally na gagawa Tongue ayus!

Chelsea offers to modernize Sasa port

CHELSEA Logistics Holdings Corp. (CLC) said it submitted a P16-billion unsolicited proposal to the Department of Transportation (DoTr) for the modernization of Sasa port in Davao City.

“We already submitted a proposal for the development of Sasa port in Davao. It’s unsolicited. We’re waiting for the actions of DoTr on that matter,” CLC president and chief executive officer Chryss Alfonsus V. Damuy told reporters on Friday.

He said the proposal, which was submitted mid-2018, covers a 25-year concession period that will have four phases focusing on the rehabilitation of the port facilities and increasing its capacity.

“If you look at the state of the port of Davao now, it really needs a massive rehabilitation. Yung deck mismo [The deck itself], there’s a lot of damaged areas which we have to rehabilitate. There are very limited equipment as to cargo handling, limited yung mga quay crane nila [their quay crane is limited]. So those are things that we wanted to do with the Phase 1, rehabilitate the existing and install modern equipment,” Mr. Damuy said.

He estimated Phase 1 of the proposal would require around P5 billion.

“Yung phase kasi niyan is depending on the certain milestone…. It’s done in phases na pag na-reach yung certain capacity, we will roll out the next phase [The proposal is based on the success phase after phase when a certain milestone is achieved…. It’s done in phases such that when we reach a certain capacity, we will roll out the next phase],” Mr. Damuy added.

The Sasa port will be handling container, general cargo and passenger ships for both domestic and international markets.

In March, the National Economic and Development Authority (NEDA) regional office in Davao said the DoTr put the Sasa port upgrade back in the lineup of projects under the government’s public-private partnership (PPP) program.

To recall, the Philippine Ports Authority (PPA) had pulled out Sasa port from the PPP list in December 2016 after getting approval from the PPA Board to study alternative development plans with a budget of about P4.7-4.9 billion.

The P19-billion rehabilitation plan drafted under the Aquino administration was opposed by the Davao City government and the business sector which cited its cost.

Meanwhile, Transportation Secretary Arthur P. Tugade on Friday said he wants more attention to be given to upgrading ports in order to improve inter-island connectivity in the country.

Although he can’t disclose details, Mr. Tugade told reporters the DoTr currently has a number of unsolicited proposals for port development.

“Meron sa Davao. Meron sa container sa Cebu. Pero…habang pinag-uusapan at wala pang sure, mahirap [There’s one in Davao, there’s one in Cebu. But until discussions are ongoing and nothing is final, it’s hard to speak],” he said. 



...sana makalusot si CLC

CLC-Trans-Asia deal under review

THE Philippine Competition Commission (PCC) on Wednesday started a review of Chelsea Logistics Holdings Corp.’s (CLC) acquisition of Trans-Asia Shipping Lines, Inc.

The Phase 1 review comes after the anti-trust body received the companies’ notification of the deal last Sept. 21.

To recall, the transaction was earlier voided due to CLC and Trans-Asia Shipping’s failure to notify the PCC, even as the size of the transaction fell under the compulsory notification threshold of P1 billion.

The voided deal led to the PCC approving CLC’s purchase of shares in KGLI-NM Holdings, Inc., which owns 2Go Group, Inc. The PCC had said the Trans-Asia transaction initially raised competition concerns, as both 2Go and Trans-Asia were owned by Udenna Corp.

A hearing was held at the PCC on Sept. 17, as the parties sought to have both decisions reconsidered.

The PCC said Udenna Chairman and CEO Dennis A. Uy and company representatives committed to complying with the notification requirements, as well as make “voluntary commitments” to address the competition concerns.

“These include the commitment to be bound by a price monitoring scheme and provide necessary information to implement the same,” the PCC said.

Because of this, the PCC set the applicable administrative fine at 1% of the transaction value amounting to P11.4 million. This lower than the P22.8 million penalty set by the PCC.

“Compliance is the cornerstone of fostering a culture of competition. The competition law is fair as it rewards faithful observance of the rules while it penalizes violations,” PCC Chairman Arsenio M. Balisacan was quoted as saying in a statement.

Under PCC rules, the Phase 1 review is conducted within 30 days from notification and payment of filing fees. The review will determine whether or not the deal will raise competition concerns. If competition concerns arise, the PCC will proceed to a Phase 2 review.

Based on its previous review of the Chelsea/KGLI-NM transaction, PCC found that Chelsea’s control of both 2Go and Trans-Asia would lead to a substantial lessening of competition affecting Roll-On/Roll-Off passenger shipping services in six routes, namely Cebu-Cagayan De Oro; Cagayan De Oro-Cebu; Cebu-Ozamis; Ozamis-Cebu; Cebu-Iligan and; Iligan-Cebu legs.

It also found substantial lessening of competition in the cargo shipping services in the same areas plus the Cebu-Zamboanga leg.



...alright! nice Tongue

DOTr may give ‘original proponent status’ to 2 firms to develop Davao, Kalibo airports

Chelsea Logistics Holdings Corp. and Mega7 Construction Corp. may soon receive the original proponent statuses (OPS) for their separate unsolicited proposals to develop and expand the Davao and Kalibo airports, as the transportation department approaches the tail end of its review process for the offers.

Department of Transportation (DOTr) Undersecretary Manuel Tamayo said the government is just waiting for Chelsea, a company controlled by businessman Dennis A. Uy, to sign an ad referendum to finalize the process.

“Basically, it has been approved. There is just an ad referendum that has to be signed. Once signed, we can grant them the original proponent status,” he said.

Tamayo added there are some “clarifications” on the “interpretation” of the rules set under the build-operate-transfer law, which basically spells out the provisions on unsolicited proposals.

Transportation Director for Communication Goddes Hope O. Libiran confirmed this, adding there is now a board resolution for the granting of OPS to Chelsea and Mega7.

She said the resolution is now being circulated to members of the Civil Aviation Authority of the Philippines (Caap) board for signature and concurrence.

“Please note that the DOTr and Caap have no technical objections on the unsolicited proposals. They were both presented to the Caap board for the grant of the OPS,” she said.

She noted it is the Caap that “ultimately decides whether a proponent is given an OPS.”

“We’re still waiting for one more signature from the Caap Board for the grant of the OPS. Anytime we secure the one signature, we will be ready to grant the OPS both to the Davao and Kalibo proponents,” she said.

Resubmitted earlier this year, Chelsea’s airport proposal involves the development of the Davao International Airport to meet the projected 15 million annual passenger volume by 2050.

Mega7’s offer, rejected due to lack of information earlier this year, entails the development of the Kalibo International Airport.

Both proponents and the transportation department have yet to make public specifics of the unsolicited offers.

Unsolicited proposals, under the law, have to go through several approvals process from the implementing agency and the attached bodies under the National Economic and Development Authority (Neda).

They will also be subjected to a Swiss challenge, a process that allows other groups to submit offers superior to the original proposal. The original proponent will then have the right to match or submit a counteroffer to win the contract.



...naulit na naman balita Tongue

Uy firm gets original proponent status for Davao airport project

BUSINESSMAN Dennis A. Uy’s Chelsea Logistics Holdings Corp. (CLC) has been given original proponent status (OPS) by the government for its P49 billion proposal to operate and expand the Davao International Airport.

In a statement, the Department of Transportation (DoTr) said the Civil Aviation Authority of the Philippines (CAAP) on Friday granted OPS to Chelsea Logistics for its Davao airport proposal, and Mega 7 Construction Corporation for its P3.8 billion proposal to upgrade the Kalibo International Airport.

“The (CAAP) Board is currently meeting with the proponents to facilitate completion of requirements by the National Economic Development Authority (NEDA), who will still evaluate the proposals for approval,” the DoTr said.

CLC last May 28 submitted its unsolicited proposal to operate, maintain and expand the Davao International Airport.

Mega 7, on the other hand, sent its unsolicited proposal for the operations, maintenance and upgrade of the Kalibo International Airport last Aug. 6.

The proposals of CLC and Mega 7 both include the expansion of passenger terminal buildings at the Davao and Kalibo airports, respectively. Both firms proposed a concession period of 30 years.

The DoTr and CAAP did not have any objections to the two airport proposals.

Once the proposals are given the go signal by the NEDA Investment Coordination Committee, they will be endorsed to the NEDA Board, led by President Rodrigo R. Duterte, for final approval.

As unsolicited proposals, the two airport projects will have to undergo a Swiss challenge, where other companies can make competing offers, while giving the original proponent the right to match them.

Prior to its proposal for the Davao airport, CLC first submitted a P67 billion proposal to develop, operate and maintain both the Davao airport and New Bohol (Panglao) International Airport. The DoTr did not want a bundled proposal, prompting CLC to focus on solely on the Davao airport.

Mega 7 was first rejected by DoTr, after it discovered the company is 90% owned by Digichive Philippines Corp. which is primarily engaged in marketing and advertising, and 10% is owned by Dominion Intertrade Corp., which is engaged in general wholesale merchandise.

“The proponent does not exhibit sufficient experience in airport development, operations, and maintenance,” the DoTr earlier said.


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