SBS Philippines Corp
SBS injects more capital into subsidiary LHC

SBS PHILIPPINES Corp. is infusing more capital into its subsidiary to fund the acquisition of warehouse facility owned by a subsidiary of multinational beverage giant The Coca-Cola Corp.

In a disclosure to the stock exchange on Monday, SBS said its board approved the additional subscription to P351.65 million worth of shares of Lence Holdings Corp. (LHC) involving some 52 million shares at P6.7625 apiece.

The shares comprise 65% of LHC’s outstanding shares.

The subscription to additional common shares will be issued from the unissued capital stock of LHC, with the payment of the consideration expected to be made on Feb. 5.

“The additional share subscription is intended as added capital infusion in LHC to partially finance the closing of the acquisition of a warehouse facility property comprising of land, buildings, and fixed assets,” SBS said.

LHC is in the process of completing the P520-million takeover of the facility complex owned by CocaCola Export Corp. — Philippine Branch and its related parties in Laguna. The closing date of the transaction was moved to Feb. 9 instead of Jan. 29.

SBS will use the property for its warehouse and distribution operations that will serve as a key distribution hub for regional market customers south of Metro Manila.

The transaction is expected to result in gains from real estate investments and operational enhancements to be generated from the property acquisition, which will grow and diversify SBS’ income streams in the future.

LHC, which was incorporated in November, is 65% owned by SBS. SBS Holdings and Enterprises Corp. controls 25% and the Sytengco family holds the remaining 10%.

A chemical trader and distributor, SBS diversified into the property and investments business last year to offset some of the fluctuations in the chemical trading business and, at the same time, provide a new income source for the company.


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SBS completes acquisition of P520-million warehouse

SBS PHILIPPINES Corp. has completed its P520-million acquisition of a warehouse facility owned by the local unit of multinational beverage giant The Coca-Cola Corp.

In a disclosure to the stock exchange on Monday, SBS said its subsidiary Lence Holdings Corp. (LHC) has closed the transaction on Feb. 9. The acquisition involves warehouse facilities and the property lot of The Coca Cola Export Corp. (TCCEC) — Philippine Branch located in Silangan Industrial Park, Mapagong, Calamba City.

The 4.7 hectare-property houses ambient and cold storage facilities, and machinery operated by TCCEC. The lot where the facilities stand, meanwhile, is owned by Benesale Land, Inc. (BLI).

Prior to the transaction, LHC signed a share purchase agreement with TCCEC for the purchase of 100% equity interests in BLI, or a total of 27,000 shares.

SBS intends to use the warehouse facility as a key distribution center for regional market customers south of Metro Manila. The company noted this will also cut logistics costs and sourcing organizations, thereby providing savings for SBS customers.

“Further, this capital expenditure would not only help control residual risks in not owning major logistics facilities but it is also a good investment opportunity to broaden the Company’s asset base,” SBS said.

Incorporated in 2001 as a chemical trader and distributor, SBS has since diversified into the real estate sector by making investments in various properties through its subsidiaries. In November 2017, the company created LHC as a unit that will specifically handle investments in warehouse facilities.

LHC is 65% owned by SBS and 25% by SBS Holdings and Enterprises Corp. (SHEC), while the remaining 10% is owned by the Sytengco family.

Aside from warehouse facilities, SBS has been ramping up acquisitions in the property sector through SHEC, which has already acquired a stake in different firms with properties in Mandaluyong City, Quezon City, and Bacolod City.


SBS Philippines acquires properties in Quezon City

SBS Philippines Corp. on Monday said its associate companies have acquired properties in Balintawak and Green Meadows in Quezon City.

In a statement, SBS Philippines said Smyte Philippines Holdings Corp. recently signed a deed of absolute sale to acquire a 2-hectare property adjacent to a 3-hectare property already owned by another associate of SBS.

“The Group considers such acquisition in prime landholdings for a potential joint development of the combined 5 hectare property in Balintawak area which offers strong value and a good potential to deliver an attractive total return due to its attractive size and location,” SBS said.

Another associate company Namia Holdings Corp. also acquired a more than 3,000-square meter property in Green Meadows.

“This acquisition is considered for a potential joint mixed-use development or sale in order capitalize in the growing marketability of the area,” SBS said.

The company said it continues to boost its property investments, given the growth prospects of the local market.

“In line with this, the Group has started to explore the best utilization of its Ayala Makati asset through a possible joint development for a commercial building in this prime location,” it said.

SBS said it is also entertaining offers for its Mandaluyong property.

The company’s profit declined by a third in the first quarter of 2018, following higher finance costs and its share in the losses of associates. SBS generated a net income of P18.6 million in the January to March period, P8.6 million lower than what it delivered at the same time a year ago.



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SBS Group H1 profit declines 57%   

CHEMICALS producer SBS Philippines Corp. said net income in the first half of the year fell 57 percent to P23.2 million from the P53.5 million registered in the previous year. It said the drop in profit was due to lower revenues from the food ingredients segment, which was affected by resistance to pricing action taken on account of the higher importation and supplier costs. However, it said net sales grew 15 percent to P589.3 million from P512.7 million last year, with solid growth in raw materials for animal feeds, veterinary, and agricultural inputs segment. 



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