SBS Philippines Corp. has entered into a share purchase agreement with The Coca Cola Export Corp. (Philippines) for the acquisition of a 100 percent stake in Benesale Land Inc. for P520 million.
In a disclosure to the Philippine Stock Exchange, SBS said it was purchasing 27,000 shares in Benesale Land through its subsidiary, Lence Holdings Corp., in line with its plan to invest in the real estate sector.
The total price was based on the combination of the market and assessment values of the parties covered by the transaction.
Benesale Land currently owns a five-hectare parcel of land in Calamba, Laguna. The transaction includes the acquisition of warehouse facilities and machinery in the said area.
“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,” SBS said.
“Given that SBS customers are looking for savings, the south depot will allow greater opportunities for customers to cut down on their logistics and sourcing organization, integrate the corporation’s procurement and logistic capabilities in their business processes, and promote collaborations for supply chain optimization to simplify their operations,” it added.
SBS also said the investment will allow it to not only help control residual risks in not owning major logistics facilities, but will also serve as a good venture to broaden its asset base.
“The arrangement will also allow the lease or use of the other areas for additional business building projects of SBS group. This arrangement permits the Corporation to grow and diversify its income streams.”
The transaction will be concluded on January 29 this year after SBS completes the closing requirements by the parties.
SBS is a listed chemical products importer, wholesaler, and distributor, which has recently diversified into the property business.