Listed chemical products distributor SBS Philippines Corp. has signed a deal with The Coca Cola Export Corp. (TCCEC) to acquire a 4.7-hectare warehouse facility in Calamba City in Laguna for P520 million.
SBS, through its subsidiary, Lence Holdings Corp., entered into a share and asset purchase agreements with TCCEC and its related parties last week for the 100-percent equity interests of Benesale Land Inc., the owner of the facility.
“The facility will principally be used in the warehouse and distribution operations of the corporation to serve as a key distribution center for regional market customers south of Metro Manila,” the company reported to the bourse.
Under the share purchase agreement, LHC will acquire a total of 27,000 BLI shares, representing the total outstanding capital stock of BLI.
Under the asset purchase agreement, LHC will acquire buildings, property improvements and machinery, including the warehouses, freezer and cold storage buildings, and other facilities owned by TCCEC.
The purchase price for the stock and asset sale is payable in full on completion date which is targeted this January 29, subject to the satisfactory completion of the closing requirements by the parties.
“It is expected that the transaction will result to some gains from the real estate investments and operational enhancements to be generated which will grow and diversify the corporation’s income streams in the future,” the company added.