LBC buys Taiwanese affiliate to boost global revenues
MANILA -Logistics company LBC Express Holdings Inc. acquired full ownership of a Taiwanese company engaged in employment services as it beefs up global revenue channels.
In a recent disclosure, the listed courier service provider said it had bought Blue Eagle and LBC Service Ltd.—as a related party of LBC Express—for 5 million Taiwanese dollars or about P8.7 million, which is based on fair market value.
“The acquisition is expected to benefit the company by contributing to the global revenue stream of the company,” LBC said, without elaborating on how the acquired business would create synergy with its main operations.
“With respect to the payment of the purchase price in the purchase agreement, such payment will not materially impact the financial condition of the issuer,” it added.
LBC mainly generates revenues from logistics services, which include domestic and international courier and freight forwarding services by way of air, sea and ground transport.
Another revenue stream is money transfer business such as remittance services, bills payment collection and corporate remittance payout services.
The logistics service provider is expecting a pickup in cargo throughput and remittance volume during the Christmas season due to holiday spending.
Prior to this, it has been beefing up its operations with the construction of a new warehouse, importation and installation of a sorting machine and land acquisition. INQ