Max’s group acquires more stake in Pancake House

MANILA, Philippines – Max’s Group of Companies has acquired an additional 23.1% stake in the listed restaurant chain Pancake House Incorporated, increasing its ownership to 76.71% of shares.

In a filing with the Securities and Exchange Commission, the Max’s Group said it has signed an agreement with Southeast Asia Fund LLC and Aureos Malaysia Fund LLC to buy out its 23.1% interest, which is equivalent to 55.284 million shares in Pancake House.

The transaction is worth P2.98 billion since shares were sold for P15 a piece.

The Max’s group earlier bought 55.38% interest or 144.556 million shares of Pancake House from businessman Martin Lorenzo, also for P15 per share.

With this recent acquisition of shared from the Aureos group, Max’s now has 76.71% stake or 198.841 million shares in the restaurant chain.

Aureos Capital is a private equity fund management company which specializes in investing in small- and medium-sized businesses in developing markets.

Max’s Group also filed a tender offer on Thursday, January 16, to acquire the remaining 23.39% stake equivalent to 60.396 million shares held by minority shareholders.

The restaurant group will shell out an additional P905 million to acquire the public shares, assuming that shareholders sell their stake.

The Max’s group said it was buying out the shares of Pancake House to expand its hold on the casual dining business in the country.

“This combination would bring together excellent resources and strong brands in Max’s and Pancake House. Both companies share a long history of brand recognition and innovation, customer loyalty, and proven track record for expansion. The transaction is aimed at reinforcing the values of both Pancake House and Max’s in servicing their loyal customers,” Max’s Group said.

The Max’s Group currently has 150 stores in the country and abroad. The restaurant group also brought international brands such as Jamba Juice and Krispy Kreme to the country.

Pancake House, on the other hand, has 105 outlets of flagship brand Pancake House, and 300 other outlets of casual dining restaurants like Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Sizzlin’ Pepper Steak, Le Coeur De France, The Chicken Rice Shop, Maple, and Yellow Cab.

Max’s Group said it intends to keep Pancake House listed with the Philippines Stock Exchange. The group also said that it could “take steps to reorganize their existing entities and businesses to consolidate these into Pancake House.” – Rappler.com