LBC Express to get up to P2B in fresh funding
LISTED LBC Express Holdings, Inc. announced on Tuesday that it is injecting an additional investment of up to P2 billion in its wholly-owned subsidiary, LBC Express, Inc., to refinance the latter’s maturing obligations and working capital requirements.
In a stock exchange filing, LBC Express Holdings said its board approved on Monday the additional investment by the company in its subsidiary.
“The terms of such additional investment, such as the number of shares to be issued by LBC Express, the issue price of such shares, and other terms and conditions, have not been finalized as of date,” LBC Express Holdings said.
The board delegated the authority to finalize the terms of the investment to the management of the company.
The working capital requirements of LBC Express, a courier and freight forwarding services provider, include payment of taxes and related costs and expenses, the company said.
“Such additional investment is expected to contribute to the continuous business operations of LBC Express,” it noted.
LBC Express is also a nonbank provider of domestic and inbound international remittance services in the Philippines.
LBC Express Holdings previously reported an attributable net income of P310.56 million for the first six months of the year, turning around from a loss of P501.73 million in the same period a year ago.
Revenues for the period went up 49.1% to P8.41 billion from P5.64 billion previously. Revenue improvement was mainly from the company’s logistics segment with overall growth of 52%.
“The increase in logistics revenue, both in domestic and overseas market, is driven by the improvement in sales performance of existing branches after the worldwide quarantine last year,” LBC Express Holdings said in a statement.
LBC Express Holdings closed unchanged at P20 apiece on Tuesday. — Arjay L. Balinbin