LBC Express Holdings Inc. said Tuesday it is in talks with a local company and a foreign group for possible acquisitions to strengthen its logistics business.
LBC Express chief finance officer Enrique Rey said in an interview at the sidelines of the annual stockholders’ meeting the company was in an advanced stage of negotiations with a regional player and a local firm.
Rey did not identify the two groups, but said LBC Express was interested in acquiring additional logistics support to complete its supply chain.
“We are looking for companies that are similar to what we are doing and offering the service being provided,” Rey said.
LBC Express expects to surpass its 2017 net income and revenue targets, given the company’s strong first-half performance.
The logistics firm earlier set a net income target of P985 million and revenue target of P9.8 billion in 2017.
“We expect to overshoot our targets by 3 to 5 percent. We have exciting things that we are planning to do in the second half of the year to further boost numbers,” Rey said.
LBC Express posted a net income of P441 million in the first half, up 5.5 percent from P418 million recorded in the same period last year.
Revenues climbed 19.5 percent in the six-month period to P4.9 billion from P4.1 billion recorded a year ago.
Meanwhile, LBC Express said it was still planning to conduct a follow-on offering by the fourth quarter of the year.
Rey said the company was now in the process of amending the registration statement previously filed with the Securities and Exchange Commission for re-submission.
The company said the terms of the follow-on offering, including the number of shares and the offer price, were still being finalized.
Rey said he was confident that LBC Express would be able to get an SEC approval for the follow-on offering as it was now prepared to attach all the cases related to the whole LBC group.
The SEC rejected the planned share sale of LBC Express in April, on non-disclosure of the material information in its prospectus, including the legal proceedings involving its major shareholders.