Jollibee to acquire 70% of Mang Inasal
By Yahoo! Southeast Asia
Jollibee Foods Corporation (JFC), the Philippines’ largest food service company, offered to acquire 70 percent of Mang Inasal Philippines, Inc. (MIPI), owner and operator of the Mang Inasal restaurant chain.
In a statement, JFC said it Injap Investments Inc., parent company of MIPI, has “unconditionally and irrevocably accepted” the offer.
JFC said its unsolicited offer included the principal terms of the share purchase agreement, which will be signed within 30 days. This would be subject to completion of JFC’s due diligence.
Once the deal is done, JFC would own 70 percent of MIPI, while the rest is owned by Injap.
JFC Chief Finance Officer and Vice President Mr. Ysmael V. Baysa said the purchase is estimated to amount to approximately P3 billion.
“Part of the consideration in the amount of P200 millions had been paid by JFC as initial payment. Thereafter, 90% of the purchase price (less than the initial payment) will be paid on closing, with the remaining 10 % paid over 3 years from closing,” the JFC statement added.
JFC’s deal with Mang Inasal is estimated to add 5 percent to its worldwide system wide sales, 5 percent to its revenues, and 7 percent to its net operating income on annual basis.
Mang Inasal, on other end, will increase JFC’s store network in the Philippines by 19 percent and 16 percent worldwide.
Mang Inasal serves grilled chicken and Filipino food.
As of October 18, 2010, the chain consists of a total of 303 stories, of which 24 are company-owned and 279 are franchised. It operates 2 commissaries.
MIPI has an estimated annual total revenues of P2.6 billion and system-wide sales of P3.8 billion.
The JFC Group of Companies currently operates a total of 1,578 stores in the country. It is also operating 375 stores abroad.
Reposted From Yahoo! Southeast Asia