Oh no not again! PCC voids Dennis Uy purchase of Trans-Asia Shipping Lines
The Philippine Competition Commission has declared void businessman Dennis Uy’s acquisition of Trans-Asia Shipping Lines due to the group’s failure to notify the antitrust body about the deal.
In a statement, Uy’s Chelsea Logistics Holdings Corp. said it received the PCC’s decision, which apart from nullifying the deal also imposed a P22.8 million fine on the company.
The PCC ruled that Chelsea should have notified them about the transaction as Trans-Asia, which then had assets of P1.1 billion, met the applicable reporting threshold.
In a statement, Chelsea said it was weighing its options on whether “to file a motion for reconsideration with the PCC or to go straight to the Court of Appeals for redress.”
Chelsea argued that notification to the antitrust body was not required since since Trans-Asia’s net asset value at the time of the sale was way below the Commission’s P1 billion threshold.
“The basis for the P1 billion size of transaction threshold should be computed based on net assets. Trans-Asia had debts on its books which brought down its NAV to not even half of the Commission’s P1 billion threshold.
PCC, however, maintained that the computation should be based on “gross” assets.
Chelsea is the holding company of the shipping and logistics arm business segments of Uy’s Udenna Group of Companies.
This marks the second time the PCC has nullified a transaction entered into by Uy. Last February, the antitrust body cancelled Udenna’s acquisition of shares of a Dutch company that held a majority stake in Negros Navigation Co.