Monde Nissin Corp. said Thursday it is acquiring a 15-percent interest in restaurant chain operator Figaro Coffee Group Inc. for P820.3 million, a move that will enable it to expand its presence in the food sector.
Monde Nissin said in a disclosure to the stock exchange its executive committee approved the acquisition of 820.268 million shares at a subscription price of P1 apiece.
The price represents a 12.35-percent premium to FCG’s closing of P0.89 on Wednesday.
Monde Nissin chief executive Henry Soesanto said the acquisition would provide the company exposure to the food service sector, which could be a potential avenue for further growth here and abroad.
Soesanto said Monde Nissin would work with FCG to identify synergy plans to create value for both companies.
“We look forward to working with the Figaro Group management team and potential future collaborations that this new relationship may offer,” he said.
FCG said in a separate disclosure the fresh equity from the transaction would be used to finance expansion plans.
“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,” FCG chairman emeritus Jerry Liu said.
The Philippine Stock Exchange implemented a one-hour trading halt on FCG’s shares to enable the investors to digest the news.
FCG owns Figaro Coffee Systems Inc. which operates and/or franchises a network of restaurants. These include Figaro Coffee, Angel’s Pizza, Tien Ma’s and The Figaro Group Express.
Monde Nissin is a global food and beverage company with a portfolio of leading brands across fast-growing categories including Lucky Me! noodles, SkyFlakes crackers, Fita crackers, Monde baked goods and Quorn meat alternative products.
The share price of FCG has climbed by 48.3 percent since the start of the year.