MPIC acquires 12% stake in Air21

MANILA, Philippines — The MVP Group has completed the acquisition of a 12 percent stake in Air21 after more than a year of negotiations, MetroPac Movers Inc. (MMI) president Marilyn Victorio-Aquino said.

MMI, the logistics arm of Metro Pacific Investments Corp., could increase its investment in Air21, possibly up to 100 percent, if there is an opportunity, she said.

At present, MMI intends to study the process first in running a last mile company through its 12 percent stake.

“For Air21, we have already acquired 12 percent and we are working hand in hand to do last mile…We do not want to lag behind in e-commerce and we are also busy trying to utilize our transport assets,” Aquino said.

“The 12 percent stake we thought is an entry point to know the business more. We’ve been granted certain rights to increase our stake later on. There is no cap, it can be 60 to 100,” she added.

Air21 is under the Lina Group of Companies of businessman Alberto Lina, who also served as commissioner of the Bureau of Customs during the administration of Gloria Macapagal-Arroyo and Benigno Aquino III.

Air21 was at one time the sole Philippine licensee of US-based logistics giant Fedex.

Aquino said the company intends to become the top warehousing company in the logistics industry from number two ranking in the market now.

Aquino said its warehousing capacity could more than double to roughly 70 hectares in two years from about 32 to 35 hectares at present.

“In the next two years, we will be building our warehousing capacity,” she said.

The company will be expanding its warehousing capacity in Visayas and Mindanao. At present, it has existing capacity in Luzon, Visayas and Mindanao as well.

“In two years, there is a reasonable chance, we will more than double our warehousing capacity,” Aquino added.

The company can also provide cold storage facilities and other common warehousing needs.

The country’s top conglomerates, including MPIC, have been betting big on the highly lucrative and less regulated logistics industry, now perceived as the new battlefront among businesses.

It was in 2016 when MPIC, through MMI, made its foray in logistics and invested P2.2 billion to acquire the business and assets of a group of logistics service providers including Basic Logistics Inc., a local mid-sized company.