Aboitiz Equity Ventures Inc. (AEV) is finally exiting the shipping industry with the closing of its divestment of all of its interest in its shipping and shipping-related businesses.
Now considered as a conglomerate focused on power, the Aboitiz Group told the local bourse on Wednesday that it has completed the divestment of its interests in its all of its shipping-related businesses, with the disposition of all its interests in the Abojeb Group to PTC Holdings Corp., Behike Holdings Inc., Valdicava Holdings Inc., Jebsen Invest A.S. and Furunes Holdings Inc.
The Abojeb Group specifically includes Aboitiz Jebsen Co. Inc., Aboitiz Jebsen Manpower Solutions Inc. and Jebsens Maritime Inc.
The total purchase price of AEV’s interest in the Abojeb Group is equivalent to $8.3 million, or equivalent to approximately P370 million.
The purchase price includes Abojeb Group’s interest in its subsidiaries, including, among others, Starbulk Aboitiz Jebsen Crew Management Philippines Inc., Filscan Shipping Inc., General Charterer Ocean Shipping Inc., Selandia Crew Management, Olympic Jebsen Offshore Inc. and Viking International Carriers Inc.
All of the firms mentioned are engaged in recruitment, ship manning and related businesses, AEV said.
“The divestment of interest in the Abojeb Group is part of AEV’s strategy to focus on its identified core businesses such as power generation and distribution, financial services, food, and real estate and infrastructure,” AEV further said in its filing with the Philippine Stock Exchange.
“Jebsen Invest AS, AEV’s long-time partner in the Abojeb Group, will continue to partner with Aboitiz family members in their personal capacity,” it added.
Established in 1898, AEV, formerly Cebu Pan Asian Holdings Inc., went public in 1994. Until then, the business interests of the conglomerate that was used to be Cebu-based spanned various industries such as power, banking, food production, integrated transportation and logistics (air/land/sea), property development, construction, shipbuilding and leisure/resort.
In 2010, the Aboitiz Group sold Aboitiz Transport Systems (ATS) Corp. to Negros Navigation Co. Inc. (Nenaco) for $81 million.
“The divestment of [ATS] was a very difficult decision to make, considering the Aboitiz Group has been in the transport business for over 100 years,” Erramon Aboitiz, AEV president and chief executive officer, said regarding the sale of the group’s century-old shipping business.