investments

Gokongwei firm to invest P1.25 billion in Shakey’s

Aika Rey

NEW INVESTOR. The facade of a Shakey's store.

Shakey's Facebook page

The entry of the Gokongwei family's JE Holdings comes as Shakey's reports a positive bottom line for the second straight quarter

Lance Gokongwei-led JE Holdings is acquiring P1.25 billion worth of newly issued shares of Shakey’s Pizza Asia Ventures Incorporated, for a 9% ownership slice of the pizza company.

The investment is equivalent to a purchase price of P8.20 per share – 14.6% higher than the latest 45-day volume weighted average.

Gokongwei is also up for election as a member of the Shakey’s board in July.

“We believe that we are in a relatively good position financially and, with the added benefit of a new strategic investor, we plan to make the most of both the fresh round of capital and the various synergies that come along with partnering with the Gokongwei group of companies,” said Shakey’s president and chief executive officer Vicente Gregorio in a statement on Wednesday, May 12.

Shakey’s chairman Christopher Po said the pizza company is setting its sights on “growth and expansion.”

“While our current balance sheet remains healthy, I look forward to further strengthening our financial position, with the new capital giving us additional flexibility at a time when many organic and inorganic opportunities have started to open up,” Po said.

JE Holdings’ entry comes as Shakey’s reported a positive bottom line for the second straight quarter since the coronavirus pandemic crushed company earnings.

Shakey’s on Wednesday reported a net income of P29 million for the first quarter of 2021, driven by “healthy systemwide sales” amounting to P1.7 billion.

While it did not mention exact figures, Shakey’s said dine-in sales saw a “sequential dip” during the first quarter, while delivery and carry-out sales posted “strong double-digit” year-on-year growth.

“I strongly believe in the long-term prospects of the food service industry, against a backdrop of rising Filipino incomes, and I have confidence that Shakey’s will continue to be a leader in this space,” said Gokongwei.

From January to March, Shakey’s opened 8 new stores. It plans to open 30 new stores by the end of 2021. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.