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.