SBS Philippines buys stake in four property holding firms
November 28, 2016
http://www.dealstreetasia.com/stories/sbs-philippines-buys-stake-in-four-property-holding-firms-59395/
Listed chemical traders and distributor firm SBS Philippines Corp completed a series of investments in four local property holding companies worth over $3 million (P159.9 million).
The co-investment rights of SBS involve a 37 per cent shareholding interests in Lakerfield Philippine Holdings Corp, 25 per cent in Ayschester Holdings Corp, 37.25 per cent in Cleon Phils Holdings Corp, and 17 per cent in I Bonding Holdings Corp.
SBS said, its investment strategy was in line to achieve a diversified property portfolio 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,” SBS noted. “Such small stake investments allows the company to participate in wider investment opportunities.”
Lakerfield owns a 1.38 hectare parcel of land in Mandaluyong City, while Ayschester has a 1,776 square meters lot located along Metro Manila’s main avenue Edsa. Cleon Phils and I Bonding are still in preliminary discussion on a potential property acquisition.
SBS posted third quarter earnings per share of 81 centavos on gross revenues of P1.7 billion.
From January to September 2016, SBS recorded a net income after tax hike to P974.8 million, backed by the one-off gain of P858.8 million from the sale of investment assets.
The chemical-trader distributor reported increase in sales by 11.6 per cent year on year, from P695.2 million to P776.1 million.
Operating profit was also up by 6.75 per cent from P150.7 million to P160.9 million in the same period.
SBS last traded P5.28 per share.
SBS 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.
