Chemical trading firm SBS Philippines diversifies into property, investments

Visual from the company website

SBS Philippines Corp, a listed chemical traders and distributor firm in the Philippines, is diversifying into the property and investments business.

“This move is intended to provide balance to counteract some of the fluctuations in the chemical trading business and at the same time grow and diversify the company’s income streams,” said SBS Philippines president and CEO Gerry Tan.

The company disclosed Monday (March 20) that its board of directors approved last February 28 to amend the secondary purpose of SBS’s articles of incorporation to include the holding, acquiring or participating in investments in property related assets.

Also Read: SBS Philippines buys stake in four property holding firms

The diversification proposal will be submitted for shareholder approval in the forthcoming annual general meeting of SBS.

SBS claimed its chemical trading business has been highly successful that, over time, the company was able to invest its surplus funds to take advantage of opportunities in the real estate market and experience a significant improvement in values of its real estate investments.

In 2016, SBS unlocked the value of certain long term investments in property related holdings which were held for capital growth and completed with a significant one-off gain
from the disposal of such investments assets in the amount of P858.8 million.

Also Read: SBS Philippines divests 35% stake in real estate firm Neschester for $1.2m

“The Board of Directors believes that the business prospects of property investments have much potential given the robust growth of the property market and sees such investment strategy to contribute materially to the Company’s earnings on a sustainable and long-term basis,” SBS said in its statement.

Funded initially from its earnings from the sale of its investment properties, SBS intends to further take advantage of the opportunities in the real estate market and continue with such investment strategy as a separate business of the company to be undertaken by its wholly owned subsidiary, SBS Holdings and Enterprises Corporation.

SBS’s last trading price decreased 1.28 per cent or P0.080 to close at P6.17 per share on Monday (March 20).

Also Read:

Philippines: Alco inks EPC deal with Dongfang Group, Knusford for Cebu Exchange

SBS Philippines raises $22m from IPO, shares soar nearly 50% on debut

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.