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 CocaCola 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.

Shares in SBS lost two centavos or 0.35% to end at P5.74 apiece on Monday. —