LBC in talks with potential local, foreign partners

LBC Express Holdings Inc., the country’s biggest logistics firm, is in an “advanced stage” of discussion with a foreign and a local group for a potential partnership or acquisition as part of its expansion plans.

In an interview after the firm’s annual stockholders’ meeting, LBC Express Chief Finance Officer Enrique Rey, Jr. said the potential partners will allow them to tap “additional logistics support to complete the business.”

He noted that discussions with both groups have been going on in the past three to four months.

“We’re looking at companies that are similar in what we do and would enhance the services that we are providing,” said LBC President Miguel Camahort explaining that the company “is in the state of innovating service.”

LBC is optimistic of hitting its core profit target of R985 million core profit for 2017, a 7.06 percent growth from last year’s R920 million.

Rey said they hope revenues will hit R9.8 billion, based on the first half figure of R4.9 billion. Last year, LBC generated R8.7 billion in revenues.

“There are a lot of exciting things to do at the latter part of the year that will further boost our numbers,” said Rey.

He added that, LBC hopes to push through with its planned follow-on offering by November this year as the company hopes it can comply with the disclosure requirements of the Securities and Exchange Commission (SEC) relating to cases involving its affiliate LBC Bank.

“Our intention is still to try to shoot for the fourth quarter,” said Rey.

LBC is planning a follow-offering consisting of 69.10 million common shares, divided into 10 million new common shares and 59.10 million secondary shares at an offer price of between R13 to P17 per share.

However, Rey said the information statement for the offer will still need some tweaking after the company received $50 million in funding from CP Briks Pte., Ltd., early this month.