LBC Express Inc., one of the country’s leading courier and freight forwarding companies owned by the Araneta family, plans to acquire dormant and listed Federal Resources Investment Group Inc.
The move will pave the way for a backdoor listing of LBC Express, which last year withdrew its application for a planned P7.7-billion initial public offering with the Securities and Exchange Commission.
“Please be advised that Federal Resources Investment Group Inc. has acceded to the request of a substantial shareholder to allow LBC Express Inc. to conduct a due diligence review of the company for the purpose of assessing a potential acquisition, buy-in or investment of an interest in FED by LBC or its affiliates,” Federal said.
“The request was made by such substantial stockholder for himself and on behalf of other shareholders of FED who have expressed [or who may express] willingness to cede some or all of their interests in FED in favor of LBC,” Federal added.
No definitive agreement has been reached by the parties so far.
Meanwhile, the Philippine Stock Exchange will lift the trading suspension on Federal shares today after the company requested for the voluntary move for a maximum of three business days pending disclosure of material information.
LBC in February 2014 filed with the Securities and Exchange Commission an application to conduct an IPO and hired UBS as sole international bookrunner and underwriter.
LBC would have used the proceeds from the IPO to finance strategic acquisitions, organic expansion, information technology system upgrades and refleeting of delivery vehicles as well as for other corporate purposes.
But LBC Express withdrew the IPO application, saying “other fund raising opportunities have presented themselves and that it has decided to explore the same.”