Chemical trader and distributor SBS Philippines Corp. is acquiring a five-hectare property in Calamba City, Laguna owned by The Coca-Cola Export Corp. for P520 million.
SBS said in a disclosure to the stock exchange majority-owned unit Lence Holdings Corp. signed an agreement with TCCEC and its related parties to acquire warehouse facilities and a property lot in Silangan Industrial Park in Barangay Mapagong, Calamba City.
SBS said it could use the property as its logistics facility in the south of Metro Manila.
Lence under the deal will acquire buildings, property improvements and machinery, including warehouses, freezer and cold storage buildings and other facilities owned by TCCEC.
“Given that SBS customers are looking for savings, the south depot will allow greater opportunities for customers to cut down on their logistics and sourcing organization, integrate the corporation’s procurement and logistic capabilities in their business processes, and promote collaborations for supply chain optimization to simplify their operations,” SBS said.
SBS said major logistic facilities were a good investment opportunity to broaden the corporation’s asset base.
SBS said the deal would enable it to expand and diversify its income streams in the future, aside from some gains from real estate investments and operational enhancements.
The agreement is expected to be closed on Jan. 29.
Lence is a newly-incorporated holding company which is 65 percent owned by SBS. SBS in December raised P1.41 billion from a rights offering.
SBS is one of the major chemical trader-distributors in the Philippines supplying over 1,800 customers with more than 3,000 chemical products secured from about 500 suppliers.
It offers a comprehensive selection of chemical products to serve various companies engaged in food ingredients, industrial, feeds and veterinary care, pharmaceutical, and personal care and cosmetics.
The company’s logistics infrastructure includes a network of 15 warehouse facilities located in five different sites with a combined floor space of about 46,000 square meters and a storage capacity exceeding 18,000 metric tons.