Chelsea Logistics Holdings Corp.

...I'm sure this is already in their bag...iba na malapit sa Pangulo  Smile

PPA to decide on CLC’s unsolicited proposal for Sasa port by yearend

THE PHILIPPINE Ports Authority (PPA) is aiming to make a decision on Chelsea Logistics Holdings Corp.’s (CLC) P11.2-billion unsolicited proposal for the development of Sasa port in Davao City before the year ends.

PPA General Manager Jay Daniel R. Santiago told reporters on Oct. 31 that it has already terminated the planned bidding to rehabilitate the Sasa port, allowing it to consider CLC’s unsolicited proposal submitted in August.

“They submitted, but as part of the process, there has to be a closure of the bidding process previously undertaken by the previous administration, yung sa P19 billion. We only got the approval for the closure of that bidding process about two weeks ago. But concurrently we’re already evaluating the proposal of Chelsea, and we will make a decision whether or not to entertain the unsolicited proposal no later than December this year,” he said.

Mr. Santiago said once approved by the PPA Board, CLC’s proposal would then be passed to the National Economic and Development Authority (NEDA) for further evaluation. If it gets the go-ahead, the project will then undergo a Swiss challenge where other companies are invited to submit counterproposals that CLC may match.

CLC president and chief executive officer Chryss Alfonsus V. Damuy previously told reporters the proposal involves rehabilitation of the port facilities and increasing the Sasa port’s capacity over a 25-year concession period.

To recall, the previous administration initially had a P19-billion rehabilitation plan for the Sasa port, but was suspended after the city government and business groups opposed it over the high cost.

The Duterte administration then removed the Sasa Port Modernization Project from the public-private partnership program in December 2016, then reinstated it earlier this year, according to the NEDA regional office in Davao.

Aside from CLC’s proposal for the Sasa port, Mr. Santiago said the PPA also received last month a proposal from terminal operator Kudos Trucking Corp. for the Port of General Santos.

“We’ve received two unsolicited proposals: one is in Davao-Sasa, and another unsolicited proposal for General Santos. The one for General Santos is from Kudos. Kudos Trucking. That is a private terminal operator whose main facility is in Davao also,” he said.

Like CLC’s, Kudos’ proposal is for the rehabilitation and improvement of the port in General Santos, including the installation of new equipment such as cranes.

Mr. Santos said the PPA is only entertaining unsolicited proposals for ports under Tiers 1 and 2, which are identified as ports that handle large volumes.

“So far those are the ports that we’ve identified that if ever we will be entertaining unsolicited proposals for,” he said. 

2019 SMP Charity/Tsinelas & School Supplies Donation Drive link


follow the link

...consortium of ISM/CLC wins 3rd telco, pero losing bidders have filed cases, pano yan? Smile

Gov’t names provisional 3rd major telco

A CONSORTIUM formed by China Telecommunications Corp., Dennis A. Uy’s Udenna Corp. and its subsidiary Chelsea Logistics Holdings Corp. and franchise holder Mindanao Islamic Telephone Company, Inc. (Mislatel) emerged as provisional winner in the government’s search for the country’s third major telecommunications service provider after its two contenders were disqualified.

The auction’s outcome could still change, however, as the disqualified bidders said they will file motions for reconsideration within three days, which the selection committee will have to review within three days of receipt of such appeals.

The consortium committed for its five years of operations a cumulative coverage of 84.01% of the population, total capital and operational expenditure of P257 billion, and minimum average broadband speed of 27 Megabits per second (Mbps) in its first year of operation and 55 Mbps in succeeding years, earning it a total of 456.80 points out of the auction’s maximum 500 points. Commitments on population coverage (with 40% weight), minimum average broadband speed (25%) and capital and operational expenditure (35%) are the three criteria used to grade the bidders.

Sear Telecommunications, Inc. — the franchise holder for the consortium of LCS Group of Companies and TierOne Communications International, Inc. (LCS-TierOne) — and Philippine Telegraph and Telephone Corp. (PT&T) were disqualified for lack of required documents.

LCS-TierOne was not able to comply with the required “performance security” commitment worth P700 million, while PT&T did not have a certification from the National Telecommunications Commission (NTC) proving its 10-year national scale experience.

Once the selection committee completes its review of both companies’ appeals next week, it may then recommend to the NTC en banc the final winner. The NTC en banc will declare the winner of the auction, who will then be given 90 days to complete submission of its business and roll-out plans, among other requirements.

It will get a certificate of public convenience and necessity (CPCN) valid for 15 years or the length of the franchise of a bidder, whichever is shorter; and radio frequency bands of 700 megahertz (MHz), 2100 MHz, 2000 MHz, 2.5 gigahertz (GHz), 3.3 GHz and 3.5 GHz.

In Wednesday’s auction, LCS-TierOne called out the participation of Mislatel with Udenna’s consortium, saying the company has a live contract with a member of its own group, DigiPhil Technology. “We are in consideration of P10 million that is a limitation in the use of the franchise in the sense that Mislatel is not allowed to have its franchise… used by somebody else without a prior official consent of DigiPhil. DigiPhil, in other words, has the right of first refusal,” LCS-TierOne legal counsel Raoul C. Creencia told reporters.

He said the company will file a case at either the Pasig or Makati regional trial court against Mislatel in the coming days.

Representatives of two other firms showed up at the NTC office — Now Telecom Co. Inc. and Converge ICT Solutions, Inc. — but decided not to submit their documents.

Now Telecom said it was advised by its legal team to not to participate as such action may affect its petition for injunction against the NTC, which it brought up to the appellate court on Wednesday. “Our potential filing for the new major player bidding will potentially affect the case and we were advised by our legal counsels not to submit our bidding documents at the moment,” Now Corp. investor relations officer Juan Miguel M. Honorico-Lopez told reporters.

Converge ICT, on the other hand, argued that the auction did not provide a level playing field, since bidders were imposed requirements which major telcos PLDT, Inc. and Globe Telecom, Inc. did not have to comply with in order to operate. “What is demanded from the bidders today were not asked from the dominant players before,” Converge ICT Special Assistant to the President Aristoteles Z. Elivaña told reporters.

More companies had been expected to participate in the bidding as 10 groups bought selection documents. The others were Villar-led Streamtech Systems Technologies, Inc.; AMA Telecommunication Corp.; Norway’s Telenor Group and Austria’s Mobiltel Holding GmbH.

Information and Communications Technology Acting Secretary Eliseo M. Rio, Jr. said the bidding turned out well.

“We think NTC did a very good job… The thing that I could have been more happy with kung sana marami pa ‘yung nag-bid [is if there wesre more bidders],” he told reporters.

The search for a new major telco player came at the order of President Rodrigo R. Duterte, who wants a challenger to the duopoly of PLDT and Globe.

PLDT, which currently has a mobile subscriber base of about 59 million, declined to comment on the procedure. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Globe said in a statement it welcomed a new challenger, but hopes the government would keep supporting it in serving its 67-million mobile subscriber base.

2019 SMP Charity/Tsinelas & School Supplies Donation Drive link


follow the link

...2GO CLC earnings report disappoints

2GO drags Chelsea earnings down 72%

MANILA, Philippines — Chelsea Logistics Holdings Corp. posted a 72 percent drop in profitability in the nine months ending September behind higher costs and losses from 2GO Group Inc.

Chelsea’s net profit in the three quarters stood at P43 million compared to P152 million in the same period last year.

“During the first three quarters of 2018, CLC incurred a steep upsurge in cost of sales and services and other operating expenses due to significant upward movement in oil prices, increase in depreciation and amortization brought about by the acquisition of vessels and additional manpower requirement, among other,” the company said.

“Further, the company recognized its share of P198 million in year-to-date losses from 2GO Group,” it said.

The company, however, registered strong revenue of P3.7 billion during the nine-month period, 61 percent higher year-on-year.

Revenue from its shipping business grew 54 percent to P3.5 billion, while revenue from logistics services jumped nine percent year-on-year.

“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,” Chelsea Logistics president and CEO Chryss Alfonsus Damuy said.

Chelsea as of end-September has 16 tankers, 14 tugboats, 22 roll-on/roll-off and passenger vessels (RoPax), 11 cargo ships, and one floating dock, while 2GO Group operates eight RoPax, five cargo vessels, and 11 fastcrafts.

2019 SMP Charity/Tsinelas & School Supplies Donation Drive link


follow the link

Outlier: Chelsea Logistics Holdings Corp.

CHELSEA Logistics Holdings Corp. (CLC) was one of the most actively traded stocks last week following the official announcement of the Mislatel Consortium — of which CLC is a member – as the country’s new third telecommunications provider.

Data from the Philippine Stock Exchange showed a total of P450.74 million worth of 53.80 million CLC shares having exchanged hands on the trading floor on Nov. 19-23.

CLC shares went up 2% on a week-on-week basis to P7.79 apiece last Friday from the P7.64 finish on Nov. 16. Meanwhile, it shed by 10.3% for the year.

Propelling CLC’s market activity last week was the formal announcement of the National Telecommunications Commission (NTC) last Monday that the Mislatel Consortium — composed of Mindanao Islamic Telephone Co., Inc. (Mislatel), China Telecommunications Corp., and Dennis A. Uy’s Udenna Corp. and CLC — as the official third telecommunications provider in the country after being announced the provisional winner on Nov. 9 for completing the selection process.

The day after the official announcement saw 29.83 million CLC shares being traded compared to the 3.73 million shares having exchanged hands the day before, bringing the stock’s price to an intraday high of P9.5 per share before closing at P8.49 per share. Some traders then took profits the day after, bringing the stock’s closing price down to P7.81.

“The stock has been trading actively to the decision,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.

“As the news formally came out, there were both speculator and profit takers who bought into and sold the issue respectively,” he said.

Unicapital Securities, Inc. certified securities representative Cristopher Adrian T. San Pedro shared the same assessment, saying that the market reaction “was obviously a sell on news given the extended run that it went through since Nov. 7.”

“I believe the market already perceive them as the clear winner given their two competitors were disqualified on the day of the bidding,” he said, referring to the Sear Telecommunications Consortium — led by Mindanao-based TierOne Communications International, Inc. and LCS Group of Companies of former Ilocos Sur Governor Luis “Chavit” C. Singson — and Philippine Telegraph and Telephone Corp.

After last week’s confirmation, the Mislatel group has a maximum of 90 days to submit its business plans among other requirements before it may receive its Certificate of Public Convenience and Necessity (CPCN), which is needed to operate as a telecommunications provider.

A realistic schedule for Mislatel’s start of commercial operations would be by mid-2019, according to Department of Information and Communications Technology Acting Secretary Eliseo M. Rio, Jr.

As soon as Mislatel secures the CPCN, the government will award radio frequency bands of 700 megahertz (MHz), 2100 MHz, 2.5 gigahertz (GHz), 3.3 GHz, and 3.5 GHz to the new telco.

The consortium is also open to partner with smaller telco players as well as incumbents Globe Telecom, Inc. and PLDT, Inc. for faster roll out.

CLC is the holding company of the shipping and logistics business segments of Udenna Group of Companies. Its subsidiaries include Chelsea Shipping Corp., Trans-Asia Shipping Lines, Inc., Udenna Investments B.V., Starlite Ferries, Inc., and Work-link Services, Inc.

CLC’s gross revenues grew by 28.9% to P978.61 million in the third quarter from P759.29 million last year. This brought the nine-month revenue to P3.69 billion, surging by 60.9% from P2.30 billion a year ago.

Meanwhile, its net loss for the third quarter widened by 147.1% to P310.78 million from P125.77 million. Its earnings for the nine months ended September slipped by 71.7% to P43.01 million from P151.83 million last year.

For this week’s trading, Regina Capital’s Mr. Limlingan gave the stock support and resistance prices of P7.05 and P8.50, respectively.

Meanwhile, Unicap’s Mr. San Pedro expects CLC to consolidate between a support level of P7.10 and P7.35 and resistance between P8.50 and P9.00.

2019 SMP Charity/Tsinelas & School Supplies Donation Drive link


follow the link

...this is great news for CLC

Subject of the Disclosure
Decision of the Philippine Competition Commission on the proposed acquisition by Chelsea Logistics Holdings Corp. of the shares of stock of Trans-Asia Shipping Lines, Inc.

Background/Description of the Disclosure
In its Decision dated 11 January 2019, the Philippine Competition Commission resolved that it will not take further action on the acquisition by Chelsea Logistics Holdings Corp. of 2,000,000 common shares of Trans-Asia Shipping Lines, Inc. on the basis of the conditions provided in the Undertaking submitted by the Company.

Other Relevant Information
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 rates 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.

2019 SMP Charity/Tsinelas & School Supplies Donation Drive link


follow the link

Chelsea Logistics secures PCC nod for Trans-Asia acquisition

CHELSEA Logistics Holdings Corp. (CLC) on Wednesday said the Philippine Competition Commission (PCC) has cleared its proposed acquisition of Trans-Asia Shipping Lines, Inc.

In a disclosure to the stock exchange, CLC said it received the PCC decision saying it will “not take further action (on the transaction)… on the basis of the conditions provided in the Undertaking submitted by the Company.”

As part of the conditions, CLC agreed to have the PCC monitor the passenger and cargo rates, as well as explain “extraordinary rate increases” in critical routes.

The listed firm will also submit semi-annual reports on passenger and cargo trips in critical routes, and maintain service quality in passenger and cargo services using a customer satisfaction index developed by third party monitor.

Last October, the PCC started a Phase 1 review of the 2016 deal between CLC and Trans-Asia after initially voiding it on the grounds of their failure to notify the competition watchdog.

The nullification of the deal resulted to the PCC’s approval of CLC’s acquisition of a stake in KGLI-NM Holdings, Inc., which owns 2GO Group, Inc. The PCC had earlier said the Trans-Asia transaction initially raised competition concerns, as both 2GO and Trans-Asia were owned by businessman Dennis A. Uy’s Udenna Corp.

At the same time, CLC said it will no longer proceed with the offering of three million preferred shares with an oversubscription offer of up to two million preferred shares after “careful consideration” of its business strategies.

CLC said it has withdrawn its listing application for the share offer.

The application was filed with the Securities and Exchange Commission last September. In its filing, CLC said then it would sell the five million preferred shares at P1,000 each, to fund its expansion and acquisitions.

In the nine-month period, CLC saw a 72% decline in its net income to P43.013 million. 

2019 SMP Charity/Tsinelas & School Supplies Donation Drive link


follow the link

Forum Jump:

Users browsing this thread: 1 Guest(s)