Conglomerate Metro Pacific Investments Corp. is in talks with the family of businessman Alberto Lina to acquire logistics company Air21 Express, a top executive said over the weekend.
“It’s under discussion. That’s all I could say. If something happens, we will announce,” MPIC chairman Manuel Pangilinan said.
Air21, the former Philippine licensee of US-based logistics provider Federal Express, is now engaged in door-to-door courier delivery, cargo transportation, warehousing, crating, bulk shipments and mailing. Its contract with FedEx expired in 2012.
Air21 also operates the premium airport bus service under the brand name UBE Express.
MPIC earlier raised its budget to expand its logistics business to P8 billion from P5 billion.
MPIC acquired the assets of mid-size corporate logistics provider Basic Logistics in May 2016 and formed Metro Pacific Movers Inc. to provide logistics, shipping, freight forwarding and e-commerce services.
MPIC’s subsidiary Premier Logistics Inc. also acquired some of the assets and businesses of Ace Logistics worth P280 million. Ace Logistics is engaged in the business of logistics, including warehousing, courier express and parcel delivery, e-commerce delivery, trucking, freight forwarding, customs brokerage and domestic shipping. Ace also has a strong presence in pre-delivery inspection in the automotive industry, which Premier intends to expand.
Metro Pacific earlier said it was willing to invest P5 billion in the logistics business over the next five years, as other conglomerates ventured into the sector to take advantage of growing commerce and economy.
SM Investments Corp., the holding company of tycoon Henry Sy, acquired a 35-percent stake in the parent firm of 2Go Group Inc.
Conglomerate Ayala Corp. also entered into e-commerce space with the acquisition of a 43.3-percent interest in BF Jade E-Service Philippines Inc., the owner and operator of online fashion platform Zalora Philippines.
MPIC is emerging as an infrastructure conglomerate with interests in tollways, railways, power, water distribution and healthcare in the Philippines.
MPIC reported a core net income of P3.13 billion in the first quarter, up from P2.74 billion a year ago.
Its power business contributed P2.1 billion to the company’s income; toll roads, P900 million; rail, P54 million; water, 700 million; and hospital, P182 million.