LBC SAID TO BE CONSIDERING STAKE SALE
The owners of LBC Express Holdings Inc. are reportedly considering a stake sale in the Philippine delivery company amid interest from potential buyers, people familiar with the matter said, Manuel Baigorri and Elffie Chew reported for Bloomberg.
LBC Express’ owners, namely the Araneta family and private equity firm Crescent Point, are rumored to be in talks with investment banks to search for a buyer.
According to the sources who requested not to be named due to the privacy of the matter, as much as 40% of the business could be at stake. A sale process could kick off later this year, some logistics companies and investment funds expressing initial interest, one of the people said.
Given the 13% rise of LBC Express shares in Manila in the past year, a 40% stake could be worth about $185 million based on the logistics firm’s market most recent market value.
No final decision has been made as LBC Express’ owners could still decide against pursuing a sale, the people said.
Neither representatives for the Araneta family nor for Crescent Point have responded to requests for comment.
Founded in 1945 by the Araneta family as a brokerage and air cargo agent, LBC Express now provides express delivery, cargo shipping, and remittance services, according to its website.
It has a network of more than 6,400 locations, partners, and agents in more than 30 countries. The company went public on the Philippine stock exchange in 2001.
Crescent Point became a minority shareholder in LBC Express through a $50 million convertible bond deal in 2017. The private equity firm focuses on investments in consumer-facing businesses across China and Southeast Asia, according to its website.
WEEKLY FEATURE : TRUEMONEY PHILIPPINES BUCKS THE COVID-19 CHALLENGE