The Manila Standard Today reported that the Cebu based Aboitiz Group has agreed to sell its entire 93.2% interest in shipping unit Aboitiz Transport Systems Corporation to Chinese backed rival Negros Navigation Co Inc for USD 97.8 million.

Listed Aboitiz Equity Ventures, which owns 77.24% of Aboitiz Transport, will receive USD 81.1 million in proceeds while Aboitiz & Co Inc, which holds 15.96% in the shipping company, will get USD 16.7 million. The remaining 6.8% is held by the public.

Aboitiz Group said in a statement that "The agreement essentially values the equity of Aboitiz Transport at USD 105 million, which is equivalent to approximately USD 0.043 per share. Since Nenaco intends to acquire 100% of Aboitiz Transport and as part of the agreement, a tender offer will be made to other shareholders of Aboitiz Transport using the same per share valuation."

Mr Stephen Paradies CFO of Aboitiz Equity said in an interview that the company would use the proceeds to reinvest in three core businesses, namely power, banking and food.

(Sourced from www.manilastandardtoday.com)