LBC Express Holdings, Inc. said it is selling its shares in QuadX, Inc. to a subsidiary as part of a plan to refocus the e-commerce firm’s strategy.
The listed firm told the stock exchange in a disclosure Thursday it is divesting all its 1,860,214 common shares in QuadX, which the company bought last year for the price of P100 per share, or P186 million.
The parent company said subsidiary LBC Express is buying the shares for the same transaction price, and will now own 86.11% of QuadX.
“The divestment by the Company of its QuadX, Inc. shares is being made pursuant to the plans of the Company to refocus the strategic direction for QuadX, Inc., which may include implementing certain organizational changes, with a view of turning around losses for Company,” the parent company said.
QuadX is a local company that owns, maintains and operates an e-commerce website with an online marketplace and retail store. It was bought by LBC Express Holdings in March 2018 with a goal of diversifying the group’s business.
After the deal, LBC Express Holdings said it is “optimistic that such organizational changes will ultimately benefit both the Company and QuadX, Inc.”
Aside from QuadX, LBC Express Holdings last year made several other acquisitions, such as a 30% stake in Orient Freight International, Inc. and $461,782 worth of shares in Malaysia-based LBC Mabuhay.
It also acquired LBC Mundial Corp.; LBC Mabuhay Saipan, Inc.; LBC Mabuhay Hawaii Corp. and LBC Mabuhay North America Corp. for $8.5 million.
The attributable net income of the listed firm slumped 95.6% to P25 million in the first quarter of 2019. — Denise A. Valdez
