Quezon City—(PHStocks)—SBS Philippines Corp. (PSE: SBS) is pleased to announce that in line with its investment strategy to have a more diversified interests in different property holdings at a lower capital requirement and risk exposure to the company, the company has deemed it beneficial to invest in small ownership stake in companies investing in real properties.
The company has subscribed to new shares (based on par value) for a minority ownership stake in affiliate investment holding companies that have been set up to serve as vehicles for investment in real estate assets. These “co-investment” rights of the company involve a 37% shareholding interests in Lakerfield Philippine Holdings Corp., 25% shareholding interests in Ayschester Holdings Corp., 37.25% shareholding interests in Cleon Phils. Holdings Corp., and 17% shareholding interests in I Bonding Holdings Corp., for a total investment of P151.9 million. Such small stake investments allows the Company to participate in wider investment opportunities.
Lakerfield Philippine Holdings Corp. is owner of a 1.38 hectare parcel of land located in Mandaluyong City while Ayschester Holdings Corp. is owner of 1,776 square meters lot located along EDSA. Cleon Phils. Holding Corp. and I Bonding Holdings Corporation are still in preliminary discussion on a potential property acquisition.
Meanwhile, to ensure a greater level of control in the operation of these associate companies and override any conflict of interests in view of interlocking director & officer interests, it has been structured that material transactions such as those required for investment deals involving the acquisition and disposal of investments, financing and mortgage transactions will be subject to approval of the Company as shareholder. Specifically, the Company retains the right to approve each investment in advance.
In accordance with the Corporation Code, the equity investment in these associate companies will be subject to the ratification of the company’s shareholders in the next general or special meeting of the shareholders to be scheduled.
Meanwhile, the lease arrangements of the company with respect to the Paco and Ayala properties will no longer be continued in 2017 as a result of changes in the business requirements of the contract parties.
About SBS Philippines
SBS Philippines Corporation (the “Company”) is one of the major chemical trader-distributor in the Philippines supplying a diverse customer base of more than 1,800 customers with over 3,000 chemical products sourced from more than 500 suppliers.
The Company offers a comprehensive selection of chemical products to service its wide set of clientele in the following industries: (i) food ingredients, (ii) industrial, (iii) feeds and veterinary care, (iv) pharmaceutical, (v) personal care and cosmetics.
The Company’s logistics infrastructure includes a network of 15 warehouse facilities located at 5 different sites in the greater manila area and the province of Bulacan, providing for a combined floor space of about 46,000 square meters and a storage capacity exceeding 18,000 MT. Its warehousing and distribution infrastructure provides for enormous flexibility to distribute a variety of products to a diverse set of customers and markets.
The Company’s scale and distribution reach, combined with its diversified product offering, deep industry knowledge, and value-added services on logistics management provide the Company with a distinct competitive advantage as the “one-stop shop” resource for chemical requirements.
More information on SBS is available at the SBS website at www.sbsph.com.