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Saturday, April 20, 2024

SMIC hikes stake in Airspeed Group to 51% to build up logistics business

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Conglomerate SM Investments Corp. said Wednesday it increased its stake in logistics firm AIC Group of Companies Holding Corp., or Airspeed Group, to 51 percent from 34 percent.

SMIC said in a disclosure to the stock exchange its board of directors approved the exercise of option to acquire additional common shares in Airspeed, which was founded by businesswoman Rosemarie Rafael.

Airspeed will become a subsidiary of SMIC after the latter’s acquisition of the additional stake. SMIC did not provide information on the acquisition cost.

Airspeed is an end-to-end logistics solutions and express courier company that has been in operations for more than 35 years.

It provides freight solutions management that offers a wide range of transport options via air, sea or land. Airspeed also has capabilities to do customized logistics, warehousing and distribution and customs clearance.

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The SM Group initially acquired a 34-percent stake in Airspeed in 2018 as part of its expansion in the logistics space.

Airspeed in 2021 acquired and opened new offices in Cubao, Quezon City and Bacolod, Negros Occidental to cater to the growing requirements in the logistics and online businesses.

It also established new warehouses in Paranaque City and Carmona, Cavite to support e-commerce enabler platforms which in turn reinforce online sellers’ back end operations.

Airspeed launched serval services including Speedgifts, an online gifting platform for global Filipinos who wish to send gifts anywhere in the Philippines; UnboxMe, a cross-border delivery platform that allows customers to seamlessly shop on U.S. websites and facilitate deliveries to their Philippine addresses; and Pinaspeed, an online pick-up and delivery service which makes sending gifts easier and hassle-free.

SMIC is one of the country’s largest conglomerates with investments in banking, real estate and retail sectors. It also invests in ventures that capture high-growth opportunities in the emerging Philippine economy.

Share price of SMIC rose 1.1 percent Wednesday to P851.

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