SBS Philippines Corp., a chemical trading firm which is diversifying into the property business, has signed a deal to acquire a five-hectare property with warehousing facilities used by beverage giant Coca-Cola in Calamba, Laguna for P520 million.
Through its subsidiary Lence Holdings Corp., SBS entered into a binding commitment with The Coca Cola Export Corp. – Philippine Branch and its related parties for the acquisition of warehouse facilities and property lot located at Silangan Industrial Park in Barangay Mapagong, Calamba City.
The property includes ambient and cold storage facilities, machinery and other building improvements.
“The facility will principally be used in the warehouse and distribution operations of the corporation to serve as a key distribution center for regional market customers south of Metro Manila,” SBS said in its disclosure.
“Given that SBS customers are looking for savings, the south depot will allow greater opportunities for customers 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. Further, this capital expenditure would not only help control residual risks in not owning major logistic facilities but it is also a good investment opportunity to broaden the corporation’s asset base,” it added.
The acquisition is also seen to allow the lease or use of the other areas for additional business building projects of SBS group.
“This arrangement permits the corporation to grow and diversify its income streams,” the disclosure said.
After a careful review of the disclosure submitted by SBS, the PSE said the subject transaction was covered by its rules on substantial acquisitions and reverse takeovers.