Philippines' Aboitiz Group completes exit from shipping business
Philippines-based Aboitiz Group has completely exited from the shipping business, news website InterAksyon.com reported citing a regulatory filing. Aboitiz Equity Ventures Inc or AEV sold the interests it held in joint ventures with the Jebsen Group of Norway in an $8.3 million deal. The firms involved in the sale were collectively called the Abojeb Group.
The firm said in the filing, "The divestment of interest in the Abojeb Group is part of AEV's strategy to focus on its identified core businesses such as power generation and distribution, financial services, food and real estate and infrastructure."
AEV divested the stake it held in Aboitiz Jebsen Company Inc, Aboitiz Jebsen Manpower Solutions Inc, and Jebsens Maritime Inc to Norway-based firms PTC Holdings Corp, Behike Holdings Inc, Valdicava Holdings Inc, Jebsen Invest and Furunes Holdings Inc. The report said that Abojeb Group's long-time partner Jebsen Invest will still work with members of the Aboitiz family in their personal capacities.
As part of the transaction, AEV also divested its interests in the subsidiaries of the Abojeb Group. These include Starbulk Aboitiz Jebsen Crew Management Philippines Inc, Filscan Shipping Inc, General Charterer Ocean Shipping Inc, Selandia Crew Management, Olympic Jebsen Offshore Inc and Viking International Carriers Inc. The operations of these companies are related to various aspects of the shipping industry like recruitment and ship manning, the report said.
The Aboitiz family divested the 93.2% stake it held in Aboitiz Transport System Corp or ATS in 2010 to Negros Navigation Co in a PHP 4.6 billion deal. Before the sale, ATS was the largest ship operator in the Philippines. That sale, however, did not include the joint venture firms of ATS with the Jebsen Group, the report said.
Bulk of the earnings of the Aboitiz Group comes from Aboitiz Power Corp, accounting for 71%. Union Banking Corp make up 22%, Pilmico Foods Corp accounted for 6% while Aboitiz Land Inc contributed to one percent of the company's earnings, the report said.