Philippines tycoon Dennis Uy has big plans for his shipping companies after an IPO in Manila scheduled for July.
He told reporters that his Phoenix Petroleum company is seeking to supply ro-pax and ro-ro affiliate 2Go Group with bunkers in a move that could boost the oil trader's revenue by 7%, according to Bloomberg.
Uy, who is president of both companies, has launched a $161m IPO for his Chelsea Logistics Corp (CLC).
“If we get the fuel for 2Go, which we don’t serve, we get 7%-8% that goes straight to Phoenix’s top and bottomline,” he said.
He added that existing supply contracts will be terminated.
Uy is also considering vessel "upgrades" at 2Go, as well as considering stretching the logistics chain to include air assets.
His holding company Udenna's shipping business is reportedly the largest in the country. The tanker fleet totals 39,271 grt.
It owns 31% of KGLI-NM Holdings, which in turn has 60% of 2Go’s parent, Negros Navigation (Nenaco). It is also the parent of Phoenix and Chelsea, and the group also includes Trans-Asia Shipping Lines.
The 2GO stake will be consolidated with other shipping ventures under the CLC name.
Talking of his recent investment in 2Go, he said: “I worked for it for two years. You can extend the chain. You can go into planes, ports and airports.”
CLC expects to raise net proceeds of PHP 7.58bn ($151m), which will be used to fund the expansion of its cargo and passenger shipping businesses, as well as acquisitions.
“We are accelerating the expansion of Chelsea Logistics, with a view to making it the prime mover of goods and passengers in the Philippines,” said Uy.
The company is targeting a listing on 5 July.
2Go was formerly part of the Aboitiz group, but was sold to Nenaco in 2010 for $81m.
