Ayala Corp. managing director Rufino Luis T. Manotok said there is no urgent need to sell the fastfood unit.
Manotok said management is not setting a timeframe for the sale at the risk of sacrificing the value of the company.
He said while the company has received offers from various local groups to acquire the Burger King fastfood business, no agreement has yet been finalized.
"We are still trying to sell it since it has become a very small portion of our business. It is not easy selling business right now. What we are doing is we are trying to make it more viable," said Manotok.
Manotok said the company is reviewing the status of all the remaining outlets to find out if it can close down some more and just limit the operating stores to those that are making money.
From a total of 39 outlets, the Burger King store network is now down to 31 after closing down eight branches in view of stiff competition from oldtimers Jollibee and McDonalds. These stores are located in various areas in Metro Manila and nearby Laguna and Bulacan.
Manotok said a delay in the divestment of the local conglomerate’s Burger King business would not have any impact on the group’s bottomline. "We have written off our investments in Burger King last year and booked provisions of P300 million," Manotok said.
The divestment is part of the group’s strategy to maximize shareholder value by disposing of non-core and nonstrategic assets. The group’s overall plan is to concentrate on the core businesses of banking, real estate development, as well as in telecommunications.
The Burger King franchise was not included in the Purefoods sale to San Miguel Corp. to avoid conflict of interest on the part of the food and beverage firm since it is currently serving the meat and chicken requirements of Burger King competitors Jollibee Foods Corp. and McDonalds Philippines. Also excluded from the sale are MPM Noodles Corp., PT Sinar Pure Foods International, and Purefoods’ tuna operations.