The Securities and Exchange Commission (SEC) has approved the P4.6 billion follow-on offering of listed food chain company Max’s Group Inc. (MGI).
In a regulatory filing emailed to the media on Thursday, MGI said it will issue 300.14 million common shares, priced at P29.50 per share.
The P4.43 billion net proceeds after taxes and offer-related expenses will be used for repayment of debt incurred in the acquisition of a controlling interest in the company (P3.9 billion), capital expenditure for store and commissary expansion, and working capital for 2015 (P500 million).
The company earlier borrowed P4.3 billion from the Bank of the Philippine Islands (BPI) to acquire 233.16 million shares or 89.95-percent controlling stake in the former Pancake House Inc. (PHI). The loan has an interest rate of 5.5556 percent per annum, due February 2021.
BPI Capital Corp. will serve as bookrunner, issue manager and lead underwriter for the offer, while BDO Capital & Investment Corp. will act as the senior co-lead underwriter.
As of end-June, MGI has a total of 498 restaurants in the Philippines and 27 outlets abroad.
Max’s portfolio of restaurants include: Max’s Restaurant, Pancake House, Yellow Cab, Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Max’s Corner Bakery, Maple, Sizzlin’ Steak and Le Coeur de France, as well as international brands Krispy Kreme, Jamba Juice and The Chicken Rice Shop. Kristyn Nika M. Lazo