Conglomerate SM Investments Corp. has launched a tender offer for all shares the public owns at its ferry operator, 2Go Group Inc.
In a regulatory filing, SMIC said it seeks up to 378.81 million common shares constituting 15.39 percent of the issued and outstanding common capital stock, subject to an independent third-party fairness opinion.
This 15.39 percent block represents the free float level at 2Go.
The bourse requires a 10 percent minimum free float for already listed firms but those looking to go public should have a minimum free float of 20 percent.
Should the 2Go unit’s free float fall below minimum, the PSE will have to delist the ferry operator.
SMIC has hired BPI Capital Corp. as independent third-party valuation provider. It also appointed BDO Securities Corp.
2Go shares at the close of trading on Tuesday stood at P9.10, up almost 18 percent from previous close.
It reported turnaround profits of P312 million in 2022 on higher revenues which snapped two years of straight losses of P1.14 billion in 2021 and P1.84 billion in 2020.
The company also reported group revenues reaching P19.3 billion or 25 percent higher than only P15.4 billion as it benefitted from a post-pandemic economy and complete lifting of mobility restrictions.
“Our 2022 growth was the result of high demand for our services with the opening up of the economy while our increased profitability was also driven by the structural changes and financial discipline we have put in place. These changes are fully ingrained in all parts of the business and will benefit us in the long term. We are optimistic about ongoing momentum in 2023,” Frederic C. DyBuncio, 2Go president and CEO, said.
