MRC Allied to take 56pc of Manila's Johnny Air Cargo

THE group of Lucio Tan Junior has wrapped up a deal to acquire a majority stake in Manila-based Johnny Air Cargo, using listed MRC Allied Inc as the vehicle to consolidate the various business divisions of the Filipino-owned remittance and air freight services company before it goes public.

The Manila Business Mirror reports that the deal gives MRC Allied a 56 per cent stake in Johnny Air. The valuation for Johnny Air was pegged at PHP1.5 billion (US$33.15 million).

Sources cited in the report claimed that 44 per cent of Johnny Air may also be offered to a small group of domestic banks, including Philippine National Bank.

The bulk of Johnny Air's PHP5 billion in annual revenues comes from the money transfer business due to its strong presence with US-based overseas Filipino workers (OFW).

The air cargo division of Johnny Air is expected to support the operations of embattled flag carrier Philippine Airlines Inc, also owned by Lucio Tan, the report said.

It said that Johnny Air is planning an "aggressive" expansion following the acquisition of Mr Tan's group. Under MRC Allied, Johnny Air will open 20 new locations in 12 months to expand its network in North America as well as open new branches in Italy and the United Kingdom to tap OFWs in those locations. Capital spending is at PHP350 million.

"Just to consolidate Johnny Air will take some time. But we will still do an IPO [or] a listing by introduction," said a source close to the deal.
(Source:www.schednet.com)