Chelsea Logistics to acquire 100% of Starlite Ferries

Chelsea Logistics Holdings Corp. (CLC) on Monday said it has inked an agreement to acquire 100 percent of Starlite Ferries Inc., in an effort to boost operations.

Publicly-listed CLC said it signed a memorandum of understanding (MOU) to acquire 100 percent of the shares of stocks of Starlite and all its subsidiaries.

“The planned acquisition will bring us a step closer to fulfilling our commitment to growth in order to realize more value for our stakeholders, from the investors to the consumers,” CLC chairman Dennis Uy said.

The transaction value—while not yet disclosed—should be at least P1 billion as it needs the approval of the Philippine Competition Commission (PCC).

The PCC is mandated to review mergers and acquisitions with valuations of P1 billion to ensure it would not stifle free-market competition.

Starlite and its subsidiaries own a fleet of fourteen vessels, of which five are roll-on/roll-off (RORO) passenger vessels—acquired brand-new only this year and last year.

Starlite RORO vessels service the ports of Batangas, Calapan, Puerto Galera, Roxas, and Caticlan.

The proposed transaction is pending due diligence and subject to regulatory approvals.

"Once all the processes and regulatory approvals are obtained, this acquisition will be financed by the net proceeds of the company's initial public offering of common shares," CLC said.

CLC raised P5.84 billion from its maiden share sale in July.

The company earmarked P1.78 billion for fleet expansion, P245 million for ports requirements, P3.20 billion for acquisition of shipping and logistics firms, and P278 million for general corporate purposes.

“By modernizing and expanding our operations, we can provide better shipping and logistics solutions as well as make our country more competitive in capturing the increasing trade opportunities in Southeast Asia,” Uy said. — Jon Viktor Cabuenas/VDS, GMA News