mergers and acquisitions

Monde Nissin buying 15% stake in Figaro Coffee Group

Lance Spencer Yu
Monde Nissin buying 15% stake in Figaro Coffee Group
The Lucky Me! manufacturer is buying into Figaro as Monde Nissin looks toward 'greater exposure to the food service sector'

MANILA, Philippines – Monde Nissin (MONDE) is buying into the Figaro Coffee Group (FCG), as it eyes the food service sector as an “attractive avenue for future growth.”

In a Philippine Stock Exchange disclosure on Thursday, January 26, MONDE announced its subscription to 820,268,295 new unissued common shares of stock of FCG, amounting to a 15% ownership stake.

Using its operating cash flow, MONDE will be paying FCG P820,268,295 for its ownership stake, with a price of P1 per share. This is higher than the market price per share of FCG, which closed at P0.89 on Wednesday, January 25.

FCG said that it will be using the proceeds from the transaction to “finance its expansion plans.” It currently operates and franchises Figaro Coffee, Angel’s Pizza, Tien Ma’s, and Cafe Portofino.

“We welcome this partnership with Monde Nissin as we believe a combination of their leadership in the food sector, strength in manufacturing and timeless brand equity, combined with our fast-growing store network and brand strength will yield excellent opportunities for Figaro Coffee Group to solidify its position as a very strong and stable F&B company,” said FCG’s chairman emeritus Jerry Liu in a joint press release on Thursday. 

On the other hand, the new ownership stake will allow MONDE to expand into the food service sector. It currently has a strong portfolio in the food and beverage industry, with brands such as Lucky Me! noodles, SkyFlakes crackers, Fita crackers, Monde baked goods, and Quorn meat alternative products. 

“We are excited with the opportunity to become shareholders in the Figaro Coffee Group as it provides a greater exposure to the food service sector which we view as a potentially attractive avenue for further growth both here in the Philippines and abroad,” said Henry Soesanto, MONDE’s chief executive officer.

He also added that MONDE’s ownership in FCG could boost the procurement capabilities of the restaurant and cafe operator as it expands further. – Rappler.com

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