The merger of logistics provider 2GO Group, Inc. and its parent company, domestic shipping firm Negros Navigation Co., Inc. (NENACO), will take effect on January 1, 2019.
In a disclosure to the Philippine Stock Exchange on Wednesday, December 12, 2018, 2GO said it received on December 10 the Securities and Exchange Commission (SEC) approval of their internal restructuring scheme as part of the merger.
2GO, which is chaired by Davao businessman Dennis Uy, will be the surviving entity.
The internal restructuring scheme is aimed at simplifying the corporate structure and developing efficiencies and economies within the group.
“This is in line with 2GO's efforts to streamline operations, reduce costs, and increase shareholder value,” the company said.
Under the merger, each NENACO shareholder will receive 2GO common shares based on the exchange or swap ratio of 0.26 2GO share for every 1 NENACO share.
NENACO currently holds 88.31 percent of 2GO’s outstanding capital stock equivalent to 2.16 billion common shares.
Around 2.176 billion 2GO shares will be issued in exchange for the 5.597 billion NENACO shares, including the converted preferred shares.
2GO owns the brands 2GO Travel, 2GO Freight, 2GO Express, and 2GO Logistics. (Ventures Cebu)