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LBC Express makes substantial stake acquisitions in QUADX, Orient Freight

LBC Express Holdings Inc. acquired substantial stakes in two companies as part of the strategy to diversify its businesses.

In a regulatory filing, LBC said it acquired 30 percent of the total outstanding capital stock of Orient Freight International Inc.

“The company purchased 1,150,000 shares for the sale price of P63.43 or a total of P72,944,500.00,” according to the filing submitted by compliance and corporate information officer Mahleene Go.

The shares were acquired from Rayomar Management Inc., an investment and management company.

“Further, the company subscribed to 3,285,714 common shares out of the unissued capital stock of Orient Freight International Inc. at a subscription price of P44.40 for a total of P145,885,702.00,” the filing read.

Orient Freight operates a freight forwarding, warehousing, and customs brokerage concerns.

“The consideration of the purchase is based on fair market value,” LBC noted.

The company is also acquiring 86.11 percent of the total outstanding capital stock of QUADX for a total subscription price of P186.021 million.

“The company shall subscribe to 1,860,214 shares of stock at a subscription price of P100.00 per share amounting to P186,021,400.00,” said LBC.

The acquisition was approved by LBC’s board of directors on March 19, “to diversify the corporation’s businesses.”

QUADX, is majority-owned by Fernando Araneta, who sits as the chairman and CEO of the company. It currently operates an e-commerce website which includes an online marketplace, marketing services, and a retail store.

Araneta is also a shareholder of LBC Development Corp., the majority stockholder of LBC Express Holdings.

LBC did not give a time period for the transaction, but cited the need for the Securities and Exchange Commission (SEC) to approve the increase in authorized capital stock of QUADX before the acquisition deal can proceed.

LBC Express Holdings closed the first nine months of 2017 with a gross profit of P2.509 billion, up 10 percent from P2.279 billion in 2016, primarily due to higher volumes in logistics services. —Jon Viktor Cabuenas/VDS, GMA News