Max’s to buy US-based eMax to consolidate overseas revenues
MANILA, Philippines — Leading casual dining restaurant chain Max’s Group Inc. plans to gobble up the US-based company that grants franchises for the development and operation of Max’s-branded restaurants in North America, allowing the listed entity to consolidate overseas revenues into its books.
In a disclosure to the Philippine Stock Exchange on Tuesday, Max’s said the management has recommended to its board to consider including eMax’s LLC (eMax) in the ongoing integration of businesses. Max’s is consolidating with publicly listed Pancake House Inc., creating one of the country’s largest restaurant chains.
EMax is a duly registered entity in Colorado, USA, which holds the franchise and intellectual property rights for Max’s restaurants for North America. This offshore company is currently held by certain principal shareholders of the Max’s group.
“Such an acquisition will allow all shareholders of MGI to benefit from the expected growth of the Max’s restaurant business in North America, consistent with the company’s strategy and rationale for the Integration,” the disclosure said.
The transaction is expected to be submitted for the approval of the respective boards of directors of Max’s and eMax in the fourth quarter of this year. This is upon the availability of third party valuation opinions to be commissioned by the company to ensure that the transaction will be fair from a financial point of view and customary due diligence.
The disclosure said this transaction would allow the company to consolidate all revenues generated from franchising operations of Max’s outlets in North America.
EMax’s LLC reported sales amounting to $630,782 (P28.23 million) for the year ended December 2013.
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