JG SUMMIT, DHL SIGN JOINT VENTURE
JG Summit currently has interests in foods, agro-industrial and commodities, real estate and hotel, air transportation, banking and petrochemicals
Conglomerate JG Summit Holdings Inc. on Tuesday said it will be part of a joint venture that will invest P60 million to engage in the domestic logistics business starting June 2020.
The venture is with contract logistics solutions provider DHL Supply Chain and ACCRAIN Holdings Corp., Gokongwei-led JG Summit said in a disclosure to the stock exchange.
The companies are investing P60 million for the formation of a corporation, to be named DHL Summit Solutions Inc., which will provide domestic transportation, logistics, warehousing and distribution of cargoes, and other supply chain management activities.
“The Philippine economy is expected to grow by 6 percent year-on-year and businesses will need to invest in world-class logistics and warehousing services to stay ahead of the competition,” JG Summit president and chief executive officer Lance Gokongwei was quoted as saying.
“With our diverse business portfolios and local networks, we are committed to help homegrown and international companies in the Philippines achieve their next phase of growth. Working with DHL is the ideal move for us, as we leverage their global footprint and tap onto their expert knowledge to provide integrated industry-leading services,” he added.
The joint venture is subject to the board approvals of JG Summit, DHL and ACCRAIN as well as the execution of the parties of the share subscription agreements, shareholders agreement and other related transaction documents.
JG Summit said profit-sharing will depend on the shareholding of each party.
Under the agreement, the corporation to be formed will be managed by a five-member board of directors, with JG Summit and DHL each nominating two directors and ACCRAIN nominating one director.
JG Summit currently has interests in foods, agro-industrial and commodities, real estate and hotel, air transportation, banking and petrochemicals.