CHEMICAL supplier SBS Philippines Corp. has subscribed to P66 million worth of additional shares in Lakerfield Phils Holdings Corp. (LPHC) to prevent its stake in the firm from diminishing.
In a disclosure to the Philippine Stock Exchange (PSE), SBS said the investment is “to maintain the 37-percent ownership of the company in LPHC’s outstanding capital stock.”
In 2016, SBS entered into co-investment rights with various companies, including LPHC, for the 37-percent stake. At that that time, LPHC had in its portfolio a 1.38-hectare parcel of land in Mandaluyong that the company said would allow it to have an “indirect interest in prime landholdings for development.”
LPHC is a property holding company that is majority-owned by the Sytengco family, which also has an interest in SBS.
Before the transaction, SBS disclosed that the company had a carry value of investment, or investment minus depreciation, in LPHC amounting to P40.21 million.
SBS reported a consolidated revenue of P563.4 million for the first half of 2024, a 10-percent increase compared to last year’s P511.3 million revenue.
Despite the increase in revenue, the group’s net profit declined to P3.2 million from P13.2 million due to a higher finance cost.
The company said it would be spending P37 million in capital expenditures in 2024 as part of its 5-year strategic plan to consolidate warehouse operations, improve energy utilization efficiency, and invest in additional logistic infrastructure.
The company’s shares last traded at P3.95 apiece on Friday.
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