LOGISTICS and remittance service provider LBC Express Holdings Inc. on Friday said it was set to acquire Taiwan-based Blue Eagle and LBC Service Ltd. following approval from the Republic of China’s (ROC) regulatory agency.
LBC Express said it had been notified the previous day about the regulator’s nod regarding its acquisition of 100-percent equity in the company, which is engaged in employment services and organized under ROC laws.
The listed holding firm said the acquisition would contribute to its worldwide revenue stream and that the purchase would not materially affect its financial standing.
“The company purchased the shares from the sole shareholder of [Blue Eagle and LBC Service], subject to the approval of the concerned regulator/s,” LBC Express said.
“The consideration is based on fair market value, for the amount of NT$5.0 million. The full consideration is payable immediately upon signing of the purchase agreement,” it added.
The company reported last month that it generated a net income of 82.12 million in the first half of 2023, reversing the P75.41-million net loss last year.
This was driven by a decline in costs and expenses as part of management’s cost rationalization.
Service revenue, meanwhile, dropped by 5.0 percent to P7.37 billion from P7.74 billion, mainly due to the decrease in the domestic retail logistics segment.
The cost of services was said to have shrunk by 3.0 percent to P5.87 billion from P6.03 billion on the back of improvements in delivery, remittance and manpower costs.
LBC’s shares last traded on September 28 at P1.13 each.