MAX’S Group Inc. said on Monday it has received approval from the Securities and Exchange Commission (SEC) for the merger of its 11 subsidiaries as part of the vision to streamline the casual diner’s operations.
In a disclosure to the Philippine Stock Exchange on Monday, the company said the SEC gave it the go signal to merge 11 wholly owned subsidiaries into a single surviving entity which is Max’s Kitchen Inc.
“This merger is part of the continuing efforts of the company to streamline and rationalize the operations of the Max’s Group,” the disclosure read.
The subsidiaries include Max’s Circle Inc., Max’s Makati Inc., Max’s SM Marikina Inc., Max’s Baclaran Inc., Max’s Food Services Inc., Max’s (Ermita) Inc., Max’s Franchising Inc., Chicken’s R Us Inc., Square Top Inc., Max’s Express Restaurants Inc., and Max’s Kitchen Inc.
The group bought into the former Pancake House Inc. in February 2014 to debut at the PSE. The acquisition of Pancake House was funded by a P4.3-billion long term loan from the Bank of the Philippine Islands (BPI), which will be partly paid for by the P3.5-billion follow on offer by Max’s Group last December.
Since the acquisition, the group has been consolidating its subsidiaries. Apart from the Philippines, Max’s brands are also present in Vietnam, Malaysia and Brunei, Kingdom of Saudi Arabi and Qatar, as well as North America.
The company is keen in expanding into other markets in Southeast Asia and the Gulf states.
In the first half of the year, Max’s Group saw a 561 percent increase in its first half net income to P247.74 million on the back of the efficiencies achieved through its consolidation. Revenues grew by 166 percent to P4.88 billion from a year earlier.