Uy to appeal PCC decision on 2GO acquisition

Uy’s Udenna Corp. is planning to file a notification with the Philippine Competition Commission (PCC) after the government’s anti-trust body scrapped its $120 million acquisition of KGL Investment B.V., which partly owns 2GO Group shareholder Negros Navigation Co. Inc. (Nenaco), sources told The STAR.

The PCC ruled last month that Udenna failed to notify the commission of its transaction as mandated under the Philippine Competition Act. The $120 million deal met the P1-billion threshold for transactions covered by the PCC.

Udenna chairman Uy, who is also chairman of 2GO Group Inc., met with 2GO’s board of directors last Friday to discuss the PCC decision, sources said.

Sources said that among the different options and legal remedies available to Udenna, the group is looking to just submit to the PCC a notificawith tion instead of filing a motion for reconsideration with the PCC or filing an appeal before the Court of Appeals.

“They’re saying mea culpa… it was an honest mistake so they are just considering filing a notification,” a source said.

However, Uy did not confirm whether or not Udenna would indeed file a notification or resort to other remedies when sought for comment.

But no less than PCC chairman Arsenio Balisacan urged the company to just file for a notification.

“They should just file a notification. That is the most logical,” Balisacan told The STAR.

In a statement last week, Udenna vice president for corporate affairs Adel Tamano laid down three options available to the company.

“Udenna is of the view that it has sufficient basis to challenge the PCC decision either by filing a motion for reconsideration the PCC, or through a petition to the Court of Appeals. Udenna also has the option to submit to the PCC decision and file a notification to the PCC,” Tamano said.

Udenna is weighing its options and will choose which it deems will be best to protect the interests of the group and its shareholders, Tamano said last week.

Furthermore, Tamano believes the decision to impose a penalty of P19.7 million was unduly harsh and uncalled for, particularly considering the interest of the Udenna Group’s many stakeholders and the decision’s effect on business.

However, the PCC said the penalty is stipulated Under Section 17 of the Philippine Competition Act which state that parties that fail to notify the PCC of a transaction that meets the threshold are slapped with a fine ranging from one percent to five percent of the transaction value.