Logistics company LBC Express Holdings Inc. plans to acquire two Hong Kong-based affiliates as a part of a strategy to consolidate its international businesses under the company.
LBC chief finance officer Enrique Rey said in an interview following the annual stockholders’ meeting the company planned to acquire the cargo and remittance firms which were the remaining affiliates that it had not yet purchased.
Rey said the acquisitions were expected to be completed in the next couple of years.
“We want them to the healthier before they are consolidated into our business,” Rey said.
Hong Kong and Europe operations contributed less than 10 percent to LBC’s international business.
LBC Express acquired four affiliate cargo and remittance companies operating in California, New Jersey, Saipan and Hawaii for a total of $8.55 million in March.
Rey said with the acquisition, LBC Express would be able to expand the offerings of its overseas businesses.
“That is why is it makes sense to consolidate because what they do overseas is only a fraction of what LBC does in the Philippines,” he said.
“We have all these logistics segments and features that we can provide our customers like delivery and freight forwarding. We don’t have that overseas. So the opportunities are immense and we are excited about that,” he said.
LBC Express plans to open 80 branches across the country, particularly in major cities, second and third-class municipalities.
The company said it was hoping to finally secure an approval from Securities and Exchange Commission for its planned P1.5-billion share sale.
“We have filed our registration statement with the SEC as we are in the process of replying to some of their comments. We hope that we will get favorable response from SEC,” Rey said.
The logistics firms re-filed its application in May to sell up to 69.1 million common shares at a price of P13 to P22 apiece.
The offer shares consist of 10 million primary shares and 59.1 million secondary shares.
It tapped Abacus Capital and Investment Corp. as the lead underwriter and issue manager for the follow-on offering.