By James A. Loyola LBC Express Holdings, Inc., the country’s leading logistics firm, is investing P405 million in two companies to diversify into the Customs brokerage and e-commerce businesses. In disclosures to the Philippine Stock Exchange, the firm said it is investing P186 million to acquire 86 percent of QUAD X, Inc. which is owned by Fernando G. Araneta. Araneta is a stockholder of LBC Development Corporation which is the majority shareholder of LBC Express. QUAD X, Inc. owns, maintains and/or operates an e-com website including but not limited to an online marketplace, online marketing services, and an online retail store. However, it does not engage in value-added services. LBC Express is subscribing to 1.86 million QUAD X shares at R100 per share from the firm’s hike in authorized capital. Payment will be through debt to equity conversion with the assignment of advances owed by QUAD X to LBC Express. LBC said this acquisition continues LBC Express’ plan to consolidate affiliate businesses both within the Philippines and across the globe. “Our vision for the next few years is to pave the way for Digital Logistics in the Philippines, and continue to lead the industry,” said LBC Express Chief Executive Officer Mike A. Camahort. He added that, “it’s a very exciting time in logistics, and there’s much to do quickly in order to be constantly, globally competitive – everything is now in ‘real time;’ getting into Digital is definitely a must.” Meanwhile, LBC Express is also investing P219 million for the acquisition of a 30 percent stake in Orient Freight International, Inc. through the acquisition of secondary shares and subscription to new shares. Orient Freight is a leading freight forwarder and cargo handler in the Philippines and in South East Asia. Its services include Air Freight, Sea Freight, Land Transport, Container Yard, Customs Clearance, Container Freight Station, Logistics Management, Warehousing, and Domestic Distribution. “This is a strategic investment for LBC. As we continue to move toward expanding our business and maintaining our number one position in the industry,” said Camahort. He explained that, “having a stake in OFII will yield LBC enhanced economies of scale, while also achieving improved cost efficiency in certain subsectors of our business where we see a great deal of growth prospects.” In particular, Camahort said “OFII is well-entrenched in brokerage, cold chain, automotive logistics, warehousing and distribution centers, and project logistics — we look forward to working together and growing these sectors for both companies.”