Conglomerate Metro Pacific Investments Corp. will finalize a deal that will enable it to initially acquire a minority stake in logistics firm Air21 owned by the Lina Group.
Metro Pacific chairman Manuel Pangilinan said in an interview at the sidelines of the opening of the national emergency operations center in Clark, Pampanga by the Philippine Disaster Resilience Foundation he expected the deal to be finalized within the second quarter of 2018.
“I think it will close soon. Probably this quarter,” Pangilinan said, adding Metro Pacific would initially acquire a minority stake in Air21.
Metro Pacific is negotiating with Air21 for an option to acquire more shares in Air21 in the logistics company.
Pangilinan did not provide details on the deal, including the size of the transaction.
Air21 founder Alberto Lina during the same event also confirmed that both parties were in talks.
“The Lina Group is in talks with them. So far we are still talking,” Lina said.
Metro Pacific made initial foray into the logistics business in 2016 when it acquired the assets of mid-sized corporate logistics provider Basic Logistics for P2.17 billion due to strong demand for the services.
Metro Pacific later formed a new company called Metropac Movers Inc. in joint venture with shareholders of Basic Logistics to provide logistics, shipping, freight forwarding and e-commerce services.
MMI in 2017 added 31 new clients and increased its warehouse footprint to 235,000 square meters. It also purchased 512 trucks to serve warehousing, freight forwarding and trucking clients.
MMI expects to achieve profitability in 2018 and is in active discussions for further opportunities in the logistics business.
Metro Pacific also completed the acquisition of assets and key contracts of logistics firm Ace Logistics Inc. in 2017 for P280 million.
Pangilinan said Metro Pacific was looking at one or two more acquisitions in the logistics business after the Air21 deal.