Max's group, Pancake House merge in P4-B deal


Posted at Jul 01 2014 12:20 PM | Updated as of Jul 02 2014 01:26 AM

MANILA, Philippines – Pancake House Inc. and the Max's Group of Companies are merging through a P4.05 billion share-swap deal to create the country's largest restaurant group.

In a disclosure to the stock exchange on Tuesday, Pancake House said its board of directors approved the issuance of 270.2 million new shares to Max’s shareholders at the issue price of P15 per share.

Pancake House said the share-swap transaction involves the acquisition of 20 firms under Max’s group, which include Max's Restaurant, Max's Corner Bakery, Krispy Kreme, and Jamba Juice.

Apart from the four Max’s group brands, the combined entity now includes 10 more restaurants, namely Pancake House, Yellow Cab, Le Coeur De France, Dencio's, Teriyaki Boy, Singkit, Sizzling Pepper Steak, Kabisera, the Chicken Rice Shop, and Maple.

"With this integration, two-all time Filipino iconic restaurant grips and their total 14 brands are combined under one entity. This makes Pancake House the largest restaurant group in the country's increasingly competitive casual dining segment," Pancake House president and chief executive officer Robert Trota said.

Trota added that the union will provide operational synergies of both groups, creating a bigger, more integrated and efficient organization.

The deal is also expected to allow Max's to go public through the listed Pancake House.

The group now owns a network of about 500 outlets nationwide and 25 stores overseas.

The Max's group, famous for its chain of fried chicken restaurants, acquired the Lorenzo-owned Pancake House for more than P3 billion in December last year. []

BPI is the exclusive financial advisor to the transaction.

"We spent several months of extensive analysis evaluating the Pancake House business and its brands and potential synergies with MGOC and concluded with the help of management, that the integration of MGOC and Pancake House was in the best interest of Pancake House shareholders," Trota said.