Max’s to take over Pancake House

MANILA, Philippines–The Max’s restaurant group is taking over a controlling stake in publicly listed casual dining restaurant operator Pancake House Inc. for as much as P3.9 billion, marking a major consolidation in the local restaurant industry.

In a disclosure to the Philippine Stock Exchange on Friday, Pancake House said its principal shareholder, the Lorenzo family-led Pancake House Holdings Inc., had agreed to unload its 60.37 percent stake at P15 per share.

The Max’s group, for its part, will also make an offer to buy shares held by other minority investors in Pancake House by January 2014, giving other shareholders the option to exit at the same price per share.

The total tender price values the entire share capital of Pancake House at P3.9 billion on a fully diluted basis, after the conversion into equity of remaining convertible debt securities issued by the company.

“This offer from the Max’s group is superior to the others we have received, including one from a foreign entity that just had too many legal and other obstacles to surmount and would have resulted in the company going private,” Pancake House president Martin Lorenzo said.

This transaction, Lorenzo said, would ensure that the company would remain “in the capable hands of a Filipino family with a deep understanding of the market and a solid commitment to the continued growth of the company.”

Robert Trota, Max’s chair, said the new shareholder group would retain Pancake House as a listed company.

Pancake House has 105 outlets of flagship brand Pancake House plus 300 other outlets across other brands like Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Sizzlin’ Pepper Steak, Le Coeur De France, The Chicken Rice Shop, Maple and Yellow Cab.

The Max’s group, for its part, has 150 stores in the Philippines and overseas. The group has also brought to the country international food brands such as Krispy Kreme and Jamba Juice.