LOGISTICS and shipping company 2GO Group Inc. said on Friday that it was merging with parent company Negros Navigation Company (Nenaco) via a share swap transaction.
2GO told the Philippine Stock Exchange that its stockholders have approved an internal restructuring involving the merger of the two companies, with 2GO as the surviving entity.
The company said the merger is intended to simplify the corporate structure and to develop efficiencies and economies within the group.
“This is in line with 2GO’s efforts to streamline operations, reduce costs and increase shareholder value,” 2GO added.
According to 2GO, shareholders of Nenaco shall receive common shares of stock in 2GO through the “exchange or swap ratio of 0.26 2GO share for every 1 Nenaco share.”
Nenaco currently owns 2.16 million common shares in 2GO, accounting for about 88.31 percent of the latter’s outstanding capital stock.
The timetable for implementation of the merger shall be announced when applicable, as the same is subject to regulatory approval of the Securities and Exchange Commission (SEC), 2GO said.
“2GO and Negros Navigation, however, expect to complete the transaction within the year,” it added.