WED 12 DEC 2018

2GO Group, Inc.

2GO receives SEC approval for merger

with NENACO

In a disclosure to the exchange, 2GO announced that the SEC has approved its internal
restructuring, which involves the merger between the 2GO Group and Negros Navication Co., Inc.
(NENACO). Recall that this restructuring was approved by the Board of Directors last February,
while stockholder approval was obtained on April. The merger will be effective starting January
1, 2019 with 2GO as the surviving entity.

As a consequence of the merger, each stockholder of NENACO will receive 2GO shares with a
swap ratio of 0.26 2GO shares for every 1 NENACO share. Around 2.2Bil shares of 2GO will be
issued in exchange for the 5.6Bil NENACO shares, which include 2.2Bil preferred shares that will
be converted to common shares prior to the merger. After the merger, the total outstanding
shares of 2GO will be 2,462,146,316 from previously 2,446,136,400. The estimated public float
following the transaction will be 11.9%. (source: 2GO)

Shares of 2GO surged 28% to Php14.2/sh following the announcement of the SEC’s approval of
the merger.

JUSTIN RICHMOND CHENG

RESEARCH ANALYST
justin.cheng@colfinancial.com

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 ALERT I 2GO: 2GO RECEIVES SEC APPROVAL FOR MERGER WITH NENACO

WED 12 DEC 2018

IMPORTANT RATING DEFINITIONS

BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the next six to
12 months.

HOLD
Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook might be poor
or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the next six to twelve
months.

SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.

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Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and said information may be
incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date of the report and are subject to change
without prior notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. COL Financial and/
or its employees not involved in the preparation of this report may have investments in securities of derivatives of the companies mentioned in this report and may trade
them in ways different from those discussed in this report.

COL RESEARCH TEAM

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
april.tan@colfinancial.com

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

ANDY DELA CRUZ JOHN MARTIN LUCIANO FRANCES ROLFA NICOLAS

SENIOR RESEARCH ANALYST SENIOR RESEARCH ANALYST RESEARCH ANALYST
andy.delacruz@colfinancial.com john.luciano@colfinancial.com rolfa.nicolas@colfinancial.com

JUSTIN RICHMOND CHENG ADRIAN ALEXANDER YU

RESEARCH ANALYST RESEARCH ANALYST
justin.cheng@colfinancial.com adrian.yu@colfinancial.com

COL FINANCIAL GROUP, INC.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
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WEBSITE: www.colfinancial.com

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