Pancake House gives in to P15 per share offer of Max's Group

Pancake House Inc., the listed restaurant chain owned by businessman Martin Lorenzo, on Friday said its board of directors approved the sale of a 60.4 percent interest in the firm to the Max’s Group of Companies.

 

Principal shareholder Pancake House Holdings Inc. agreed to sell all of its shares in Pancake House to Max’s at P15 per share.

 

The transaction price translates to a 6.38 percent premium to Pancake House’s closing price on Dec. 19, 2013 and 7 percent over the 90-day volume weighted average of on the Philippine Stocks Exchange.

 

The price values the share capital of Pancake House at P3.9 billion.

 

PHHI holds 60.37 percent equity in Pancake House.

 

“This offer from the Max’s group is superior to the others we have received, including one from a foreign entity that just had one too many legal and other obstacles to surmount and would have resulted in the company going private,” Pancake House president Martin Lorenzo said.

 

“While we had spent a lot of time, effort and resources to make it work, we believe it was the Max’s group offer that will make us sleep better at night. 

 

“It allows Pancake House’s shareholders to realize and choose to continue to realize significant value from their investment in Pancake House’s growth over the past 14 years or continue to venture on with Max’s. It also puts Pancake House in a better position to continue providing great experiences to the customers and perform strongly in an increasingly competitive casual dining market,” Lorenzo added.

 

To acquire up to 100 percent of Pancake House shares, Max’s group will stage a tender offer starting  January 2014 to all shareholders of Pancake House.

 

Even after the transaction is completed, Pancake House will remain a listed on the stock exchange, Max’s chairman Robert Trota said.

 

Apart from Max’s Restaurant, Max’s group operates the Philippine local franchise of Krispy Kreme and Jamba Juice.

 

Pancake House operates 279 stores that include Pancake House, Teriyaki Boy, Yellow Cab, Sizzlin’ Pepper Streak, Maple, Dencio’s, Le Couer de France and Kabisera. – Danessa Rivera/VS, GMA News