LISTED Aboitiz Equity Ventures Inc. (AEV) is selling its entire interest in its shipping arm Aboitiz Transport System Corp. (ATS) to KGLI-NM Holdings Inc. (KGLI-NM).

“At a special meeting today…the Board of Directors of AEV unanimously voted to accept the unsolicited offer of KGLI-NM to buy all of AEV’s shareholdings in Aboitiz ATS subject to a due diligence audit to be conducted by KGLI-NM,” a statement from AEV said.

The AEV board agreed to sell the company’s 77.10-percent stake in ATS to KGLI-NM as well as the 15.93 percent in shares held by Aboitiz & Co. Inc (ACO). ACO is the private holding company of the Aboitiz family and is AEV’s largest shareholder.

A memorandum of agreement (MOA), which entails KGLI-NM’s purchase of all the AEV and ACO shareholdings in ATS at P2.044 per share, was signed by the three parties. AEV holds 1.889 billion common shares of ATS. ACO, on the other hand, holds 390.322 million ATS shares.

“The final terms of the sale will be subject to the due diligence audit and the execution of a definitive share purchase agreement between the parties,” added AEV.

When KGLI-NM completes the purchase, it will also conduct a tender offer for shares held by ATS minority shareholders.

“On or before November 22, 2008 [the 60th day from the execution of the MOA], KGLI-NM shall notify AEV and ACO whether it will proceed with the transaction. Any definitive share purchase agreement will be executed on closing date which is expected to occur on January 15, 2009, unless shortened or extended by the parties,” added the statement.

KGLI-NM is a domestic company, which is jointly owned by Negros Holdings and Management Corp. and KGL Investment BV (KGLI BV), a Kuwaiti-owned company.

KGL initiated investments in port and related businesses and other logistics-related concerns in the Philippines through the establishment of an air transportation logistics complex in Clark Field, Pampanga, under an agreement signed with the Clark International Airport Corp. in April 2008. Thereafter, KGL Investment—through KGLI BV—invested in Negros Navigation through the establishment of KGLI-NM Holdings Inc.

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LISTED Aboitiz Equity Ventures Inc. (AEV) is selling its entire interest in its shipping arm Aboitiz Transport System Corp. (ATS) to KGLI-NM Holdings Inc. (KGLI-NM).

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