Max‘s sets tender offer for Pancake House shares

MANILA, Philippines - Restaurant chain Max’s Group of Companies is set to buy out the minority shareholders of listed casual dining group Pancake House Inc.

In a regulatory filing, Max’s Group said it will spend close to P1 billion to acquire more shares in Pancake House, a move that brings together two of the country’s most recognized dining chains.

“To comply with the requirements of the Securities Regulation Code and its implementing rules, the purchasers are making a tender offer for up to 60.36 million common shares in the capital stock of Pancake House held by the public shareholders,” Max’s Group said.

Shares owned by the public stockholders account for 23.29 percent of the outstanding capital stock of Pancake House.

Max’s Group said it will buy out the minority shares at P15 apiece for a total transaction value of P905.54 million.

The tender offer will run from Jan. 20 to Feb. 17, with BPI Securities Corp. as the tender agent.

In December, Pancake House Holdings Inc. (PHHI) sold all its Pancake House shares to Max’s Group at P15 apiece, representing a seven percent premium compared with the 90-day volume weighted average, for a total value of P2.98 billion.

Max’s Group ended up owning 60.37 percent of Pancake House through private agreements with PHHI and Aureos Southeast Asia Fund LLC and Aureos Malaysia Fund LLC.

“[The deal] 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,” Pancake House chairman and president Martin Lorenzo earlier said.