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The Board of 2GO Group, Inc. approved the merger with wholly-owned subsidiary, Special Container and Value Added Services, Inc.
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2GO will be the surviving entity
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2GO said the merger will simplify the corporate structure and develop efficiencies and economies within the group, lead to tax efficiencies and savings
The Board of Directors of 2GO Group, Inc. approved on February 22, 2023 the merger with wholly owned subsidiary, Special Container and Value Added Services, Inc. (SCVASI) as part of internal restructuring to streamline operations and reduce cost.
With 2GO as the surviving entity, the transportation and logistics service provider said in a regulatory disclosure that the merger will simplify the corporate structure and develop efficiencies and economies within the group, will lead to tax efficiencies and savings, and increase shareholder value.
The timetable for implementation of the merger will be based on the regulatory approval of the Securities and Exchange Commission (SEC), and subject to possible scrutiny of the Philippine Competition Commission.
SCVASI offers a wide range of services, including in-land and domestic freight reefer transportation, liquid bulk transport in ISO tanks and flexi-tanks, ISO tanks and flexi-tanks repairs and maintenance, reefer van lease and maintenance, crating and packaging, and cold storage among others. It is one of 2GO’s six business units, which include 2GO Sea Solutions, 2GO Express, 2GO Forwarding, 2GO Logistics, and ScanAsia Overseas.
2GO returned to profit in 2022 after recording annual losses since 2017. The group posted a P312-million income last year on the back of P19.3 billion in revenues, which grew 25% year-on-year as the company benefitted from the country’s economic reopening and complete lifting of movement restrictions.
The company’s shipping revenues rose 67% while logistics and other services earnings increased by 30% in 2022.
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