LBC considering stake sale of up to 40% of the company

The owners of LBC Express Holdings Inc. are considering a stake sale of the company amid interest from potential buyers, according to Bloomberg.

The company’s owners, which include the Araneta family and private equity firm Crescent Point, are in talks with investment banks to help find a buyer for as much as 40% of the business. A sale process could start later this year and some logistics companies and investment funds have expressed initial interest.

Company shares have risen by about 13% in Manila in the past year. A 40% stake is worth approximately $190 million or ₱22.8 billion based on the firm’s market value as of Friday.

No final decision has been made and LBC Express’ owners could still decide against pursuing a sale.

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. It has a network of more than 6,400 locations, partners, and agents in more than 30 countries and 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.

SOURCE: Bloomberg