SBS PHILIPPINES Corp. is taking its expansion overseas with the acquisition of a company with property interests in Hong Kong for P77 million.
In a disclosure to the stock exchange on Wednesday, SBS said its wholly-owned subsidiary SBS Holdings and Enterprises Corp. (SHEC) acquired a 4.25% equity interest in Joune Holding Limited (JHL).
JHL is in the process of closing a purchase agreement with Maxco International Development Limited, which in turn owns a total of 4,641.7 square meters of land in Tuen Mun, New Territories, Hong Kong.
SBS noted that the property is located near the Mass Transit Railway station currently being constructed in the area, which will also be linked to the Hong Kong International Airport in Chek Lap Kok Island. This will likewise be connected to the Tuen Mun-Chek Lap Kok Link Bridge, also set to be linked to the Hong Kong-Zhuhai-Macau bridge slated to be completed in 2018. The company said it expects to seal the agreement within the month.
The acquisition forms part of SHEC’s plan to continue investing in property companies.
“The investment is in furtherance of the diversification and investment strategy of the SBS Group to invest in small ownership stake in companies investing in real properties to have a more diversified interest in different property holdings at a lower capital requirement and risk exposure to the company,” SBS said.
Shares in SBS lost five centavos or 0.81% to P6.15 apiece at the stock exchange on Wednesday. — Arra B. Francia
