Dennis Uy-led Chelsea Logistics to expand into infrastructure
MANILA, Philippines – Chelsea Logistics Holdings Corporation, the listed transport and logistics company of businessman Dennis Uy, is venturing into infrastructure and plans to raise funds for its capital spending budget.
Chelsea Logistics told the Philippine Stock Exchange (PSE) on Tuesday, March 20, that its shareholders approved the proposal of its board of directors to amend the articles of incorporation of the firm, to include "infrastructure facilities and systems" in its primary purpose.
With this change, the listed firm will be able to pursue business activities related to the operation of airports and ports as well as all facilities related to logistics and utilities. (READ: How to grow a business, according to Dennis Uy)
The expanded primary purpose will also enable Chelsea Logistics to expand from its current transportation businesses to other utility businesses including, but not limited to, telecommunications, power, and other related utilities.
"We will pursue our expansion strategies and find [the] best ways to complement the current business operations with the Build, Build, Build program of the Duterte administration," Chelsea Logistics president Chryss Alfonsus Damuy said in a statement.
With a whopping P8.4 trillion in infrastructure expenses estimated to be spent in the next 5 years, the program promises to usher in a golden age of infrastructure.
"We intend to participate in the development of the infrastructure facilities and systems in the country, which includes but is not limited to airport and port development and operations and other related facilities," Damuy said.
Chelsea Logistics shareholders also approved the reclassification of 10 million common shares into preferred shares.
This is in line with the company's plans to further tap the capital market to finance its capital expenditures, projects, and possible acquisitions.
Shareholders also approved the amendment of the by-laws of the company to implement the separation of the positions of president and chief executive officer, as well as the creation of the position of chief operating officer, in a bid to allow the company to better respond to its expanding business operations.
Last week, Chelsea Logistics submitted to the Department of Transportation (DOTr) an unsolicited proposal for the bundled development, operations, and management of the Davao and New Bohol (Panglao) international airports for P67 billion.
Under the proposal, Chelsea Logistics will operate and maintain the two airports' assets while undertaking development work to meet future passenger and aircraft movements.
"We will modernize both Davao and Panglao international airports into world-class airports without government subsidy by implementing the development in 3 phases with an estimated total project cost of P67 billion," Damuy said. – Rappler.com
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