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2GO to merge with subsidiary SCVASI

May 02, 2023May 02, 2023

Transportation and logistics firm 2GO Group Inc. is set to merge with its fully-owned subsidiary Special Container and Value Added Services Inc. (SCVASI), in line with efforts to boost tax efficiency and savings.

In a disclosure to the local bourse, the firm said the planned merger was approved by its board of directors last Wednesday, February 22, with 2GO as the surviving entity.

SCVASI is a fully-owned subsidiary of 2GO, offering in-land and domestic freight reefer transportation, liquid bulk transport and repair and maintenance of ISO tanks and flexi-tanks, crafting and packaging, and cold storage among others.

"The merger will simplify the corporate structure and develop efficiencies and economies within the 2GO Group," the disclosure read.

"This is in line with 2GO's efforts to streamline operations, reduce costs, and increase shareholder value," it added.

Sy-led SM Investments Corp. (SMIC) completed the buyout of 2GO in June 2021, acquiring shares from KGLI-NM Holdings, a 90%-owned subsidiary of Davao-based businessman Dennis Uy's Chelsea Logistics and Infrastructure Holdings Corp.

2GO reported a net income of P312 million in 2022, marking a turnaround from the P1.14-billion net loss recorded in 2021.

"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," 2GO president and CEO Frederic DyBuncio said.

The company provides multimodal transportation, warehousing and inventory management, distribution, special containers, and project logistics.

Aside from SCVASI, 2GO's business units include 2GO Sea Solutions, 2GO Express, 2GO Forwarding, 2GO Logistics, and ScanAsia Overseas.—AOL, GMA Integrated News

Published —AOL, GMA Integrated News