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LBC Express Holdings will invest an additional P2 billion in LBC Express to contribute to its wholly owned subsidiary’s continuous business operations
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LBC Express will use the investment to refinance some of its maturing obligations and fund its working capital requirements
LBC Express Holdings, Inc. (LBCEHI) will invest an additional P2 billion in its wholly owned subsidiary, LBC Express, Inc., to contribute to the logistics and money remittance service provider’s continuous business operations.
In a regulatory disclosure, LBCEHI said its Board approved the additional investment of up to P2 billion in LBC Express on November 8.
LBC Express will use proceeds of the additional investment to refinance some of its maturing obligations and to fund its working capital requirements, including payment of taxes and related costs and expenses.
LBCEHI said the additional investment will “contribute to the continuous business operations of LBC Express as the leading provider of courier and freight forwarding services, as well as a leading non-bank provider of domestic remittance services and inbound international remittance services in the Philippines.”
The company said the terms of the additional investment, such as number of shares to be issued by LBC Express, issue price of such shares, and other terms and conditions, have not been finalized. The Board has delegated the authority to finalize the terms of the investment to the management of the company.
LBC Express earlier said the group has embarked on a recovery plan focused mainly on rebalancing and repositioning services toward new consumer needs and behaviors. It also aims to rapidly innovate its services and capabilities to leverage the accelerated shift of consumers to e-commerce.
With this, LBC Express has been expediting its digital services for both retail and corporate customers.
Last year, LBCEHI reported a 58% decline in net income after tax, the contraction due to lower revenues and higher operating expenses related to the impact of the COVID-19 pandemic.
For the first half of 2021, LBCEHI reported a net income after tax of P318.17 million, a reversal from the P499.15 million loss posted in the same period last year, the earnings mainly driven by higher volumes handled during the period.
The group currently has a network of over 1,500 branches in the Philippines, over 300 hubs and warehouses, and thousands of partners and agents in over 30 countries.
