Federal Resources shareholders OK LBC Express buy
MANILA, Philippines – Federal Resources Investment Group Incorporated's shareholders have approved the acquisition of LBC Express Incorporated, paving the way for the backdoor listing of the Araneta-owned courier and freight forwarding services firm.
During the company annual stockholders meeting, Federal Resources shareholders also approved the company’s corporate new name, LBC Express Holdings Incorporated. (READ: Federal Resources acquires LBC Express)
To fund the acquisition of LBC Express and possible fund raising activity, shareholders of Federal Resources approved the increase in the company’s authorized capital stock to P3 billion ($64.22 million), divided into 3 billion common shares with a par value of P1 ($0.021) per share from current P100 million ($2.14 million) authorized capital stock.
Out of the P3 billion ($64.29 million) increase in capital stock, LBC Development will subscribe up to 25% of the common shares.
“The company needs to raise additional capital in preparation for the purchase of up to 1,041,180,493 issued and outstanding shares of stock of LBC Express,” Federal Resources said.
LBC Express, then known as Luzon Brokerage Corporation, was founded in the 1950s as a brokerage and air cargo event. The company initially operated as an air cargo forwarding service provider and was first to introduce 24-hour air cargo delivery service.
It has two operating segments, namely logistics, which is the company's primary revenue driver and money transfer services. – Rappler.com