Philippines: Chelsea Logistics buys cargo firm WSI, completes Starlite acquisition

Source: Manila North Harbor Port

Chelsea Logistics Holding Inc (CLC) has acquired  logistics management company Worklink Services Inc (WSI), and also completed its purchase of Starlite Ferries Inc (Starlite).

CLC bought all 475,000 shares in WSI for an undisclosed sum on Wednesday (November 8), and earlier closed its 100 per cent acquisition of Starlite for up to $31.2 million (P1.6 billion) after the Philippine Competition Commission (PCC) ruled that the transaction “does not result in a substantial lessening of competition in the relevant market.”

CLC president and CEO Chryss Alfonsus Damuy said, the deals would enable the firm to expand its operations and subsequently create more value for communities and other stakeholders.

“WSI will augment our logistics and manpower businesses as well as create additional synergy within the group,” Damuy said.

Starlite as a local roro (roll-one/roll-off) shipping firm, brings into CLC a 14-member fleet, of which five are roll-on/roll-off vessels acquired  in 2016 and 2017.

Founded in 1994, WSI is engaged in total logistics management providing ground courier, sea freight and airfreight services in the Philippines. It provides local and international courier, forwarding, trucking, logistics, warehousing and special projects management such as events management, manpower, trade merchandising and drop box management.

In the past years, WSI has established itself as a domestic logistics solution provider for various industries, with expertise in the management and distribution of a wide range of merchandise such as documents, food, garments and industrial equipment.

CLC believes its acquisition will present opportunities for synergies by WSI with the rest of the companies in the CLC Group, such as Udenna Investments BV (UIBV) that owns 80 per cent economic interests and 39.97 per cent of the voting rights in KGLI-NM Holdings Inc.

KGLI-NM holds 39.85 per cent economic interests and owns 60 per cent of the voting stock in Nenaco, which in turn owns 88.31 per cent of supply chain operator 2GO Group Inc. This means CLC has 28.15 per cent indirect economic interests in 2GO.

Only last last August, CLC raised over $100 million (P5.84 billion) in its initial public offering in the Philippine Stock Exchange. It has earmarked P1.78 billion for fleet expansion; P245 million for purchase and/or upgrade of ports, port facilities, containers, machinery and equipment; P3.20 billion for acquisition of other shipping and logistics firms; and P278 million for general corporate purposes.

Also Read:

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Philippines: SM buys stake in 2Go Group, enters logistics business

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.