Logistics, courier, and remittance company LBC Express Holdings, Inc. (LBCEHI) will acquire shares in two companies—a logistics and warehousing firm and an e-commerce company—for P404.852 million in a move to diversify its business portfolio.
LBCEHI, in regulatory disclosures on March 20, said its Board of Directors on March 19 approved the acquisition of 30% equity interest in Orient Freight International, Inc. (OFII) through the purchase of 1.150 million common shares held by investment and management company, Rayomar Management, Inc., and through subscription to 3.286 million common shares out of the unissued capital stock of OFII.
OFII is engaged in freight forwarding, warehousing, and customs brokerage.
LBCEHI will pay P72.945 million for Rayomar’s shares and will be subject to the issuance of a Bureau of Internal Revenue Certificate Authorizing Registration of the purchase.
For the subscription to OFII’s unused capital stock, LBCEHI will pay P145.886 million.
LBCHEI’s Board on March 19 also approved the acquisition of shares of QUADX Inc., which owns, maintains, and operates an e-commerce website, including an online marketplace, online marketing services, and an online retail store.
LBCEHI will subscribe to 1.860 million shares of stock of QUADX at a subscription price of P186.021 million.
Fernando Araneta, the majority stockholder of QUADX, is also a stockholder of LBC Development Corp., which in turn is a majority stockholder of LBCEHI.
The acquisition of QUADX will need approval from the Securities and Exchange Commission for the increase in authorized capital stock of the e-commerce company.
LBCEHI said these acquisitions aim “to diversify the corporation’s businesses and to realize returns on investments.”
Earlier this month, LBCEHI acquired four cargo and remittance companies operating in the United States for US$8.55 million.
These are LBC Mundial Corp., LBC Mabuhay Hawaii Corp., LBC Mabuhay North America, and LBC Mabuhay Saipan, Inc.
Also this month, LBCEHI disclosed the incorporation of a Singaporean private limited company, Diez Equiz Pte. Ltd., to diversify LBCEHI businesses and to use the acquired firm to house possible investment opportunities.
