Max's Group starts 2-year, P350M-shares buyback deal
MANILA, Philippines — Restaurant chain operator Max’s Group Incorporated is embarking on a two-year share buyback program worth P350 million ($7.33 million).
In a disclosure to the Philippine Stock Exchange (PSE), Max’s Group said its board authorized the company to exercise discretion in acquiring shares in the open market up to an aggregate value of P350 million ($7.33 million) worth of company’s shares.
"This is in line with the corporation’s cash management activities seen to benefit shareholders in the long term,” Max’s Group said.
Based on the stock’s closing price of of P14.54 per share on Thursday, February 4, P350 million is equivalent to approximately 2.2% of the corporation’s total outstanding shares.
The program started on February 4 and will end on February 3, 2018.
Several firms are aggressively buying back their respective shares in the market following the market’s recent decline due to developments overseas, particularly the economic slowdown in China and the steep drop in world crude prices.
Max’s Group was listed with the PSE in December 2014. It raised P3.5 billion ($73.32 million) by offering 197.183 million shares at P17.75 per share.
Max’s Group portfolio consists of several homegrown and international brands, namely Maxs Restaurant, Max’s Corner Bakery, Krispy Kreme, Jamba Juice, Pancake House, Yellow Cab, Le Coeur De France, Dencio’s, Teriyaki Boy, Sizzling Pepper Steak, Kabisera, and Maple.
In 2015, the restaurant chain finalized 5 new international partnerships with various international partners involving the rollout of 15 Yellow Cab stores in Saudi Arabia within 10 years, 10 Yellow Cab and Pancake House restaurants in the United Arab Emirates within 4 years, 10 Sizzlin’ Steak outlets in Vietnam within 5 years, and 3 Max’s Restaurants in San Diego, California, over the next 5 years.
In January, Max's entered into a deal with ZhongFa Group to build at least 15 Yellow Cab Pizza stores in China in the next 5 years, the company told the stock exchange.
The company earlier targeted to have at least 200 stores overseas by 2020. — Rappler.com
US$1 = P47.73