LBC Express Holdings, Inc. (LBC) is propping up its logistics business with the acquisition of two firms on Tuesday, March 20, valued at a total of more than P300 million.
In a disclosure to the stock exchange on Tuesday, LBC said it has acquired 30% stake in Orient Freight International, Inc. for P218.88 million to further diversify its business.
Under the deal, LBC will acquire Rayomar Management, Inc.’s 1.15 million common shares in Orient Freight at P63.43 apiece, for a total price of P72.94 million. The transaction will close once the Bureau of Internal Revenue’s issues a certificate authorizing registration of the shares involved.
The company will then subscribe to an additional 3.29 million shares out of Orient Freight’s unissued capital stock at P44.40 each, or P145.89 million.
LBC said the acquisition was meant to “diversify the corporation’s businesses and to realize returns on investments.”
Orient Freight engages in freight forwarding, warehousing, and customs brokerage businesses that has operations in the Philippines and in Southeast Asia, according to its website. It operates a fleet of land transport equipment, air freight forwarders, and sea freight forwarders that allows it to deliver faster pick-up and transfer of cargoes.
In a separate disclosure, LBC said it will subscribe to 1.86 million shares at P100 each from QUADX, Inc. — Arra B. Francia