Chelsea Logistics closer to acquisition of Starlite Ferries

Newly listed firm Chelsea Logistics Holdings Corp. (CLC) has moved closer towards its plan to acquire Starlite Ferries, Inc. (Starlite) after forging a Memorandum of Understanding with the latter's owners.

Subject to regulatory approval by the Philippine Competition Commission, the transaction involves CLC's offer to purchase 100 percent of the shares of stocks of Starlite and its subsidiaries.

As of now, Starlite and its subsidiaries has 14 vessels, five of which are Roll-on-Roll- off (RORO) passenger vessels which were acquired brand-new in 2016 and 2017.

“The planned acquisition will bring us a step closer to fulfilling our commitment to growth in order to realize more value for our stakeholders, from the investors to the consumers,” CLC Chairman Dennis A. Uy said.

Portion of the company's proceeds from its initial public offering (IPO) at the Philippine Stock Exchange will be used to fund this acquisition.

To recall, CLC has earmarked R1.78 billion of its IPO proceeds for fleet expansion, while R245 million will go to the purchase and/or upgrade of ports, port facilities, containers, machineries and equipment.

R3.20 billion, on the other hand, will be used for acquisition of shipping and logistics firms.

“By modernizing and expanding our operations, we can provide better shipping and logistics solutions as well as make our country more competitive in capturing the increasing trade opportunities in Southeast Asia,” Uy said.

It was in 2006 when the Udenna Group of Uy ventured in shipping through Chelsea Shipping Corp. to support the operations of Phoenix Petroleum Philippines, Inc.

It has since grown the business into the country’s biggest logistics group with the largest tanker fleet in terms of capacity.

In March, CLC further grew the Group with the acquisition of a 28.15 percent indirect economic interest in 2GO Group, Inc.