The country’s leading casual dining chain Max’s Group Inc. (MGI) has inked a deal to buy out minority shareholders of a subsidiary that owns and operates Teriyaki Boy and Sizzlin’ Steak, thus taking 100 percent control of this restaurant business.
In a disclosure to the Philippine Stock Exchange on Monday, MGI said it had signed definitive agreements to acquire the entire equity interest of minority shareholders in Teriyaki Boy Group Inc. (TBGI) equivalent to 30 percent of the company.
“This transaction allows MGI to fully consolidate operations of the Teriyaki Boy and Sizzlin’ Steak restaurant systems under MGI,” the disclosure said.
Prior to the acquisition, MGI already owned 70 percent of the outstanding capital stock of TBGI.
The price consideration was not disclosed but MGI noted this accounted for less than 1 percent of its total assets.
The selling minority shareholders were as follows: I-Foods Investment and Holdings Co. Inc., Bryan Tiu, Khatrine Tiu and Jose Bernas.
The buyout of minority shareholders of TBGI came on the heels of reports that these minority shareholders had some concerns on how the new controlling shareholder group was running the business.
In an earlier disclosure, MGI said it was adhering to principles of good corporate governance in the conduct of its business and “taking concrete steps to address the concerns raised by the minority shareholders” of TBGI.
“The organization is always cognizant of its obligations to its stakeholders, to regulatory agencies, and to the (Philippine Stock) Exchange,” the company had said.
MGI grew net profit last year by 12 percent to P561.74 million on the back of a double-digit expansion in restaurant sales. Systemwide sales went up by 12 percent to P15.34 billion for the year, in turn supporting a 10-percent growth in revenues to P11.44 billion.
The rollout of 77 new stores last year, including 16 overseas branches, brought MGI’s total network count to 623 branches. Its overseas footprint now consists of 49 outlets The group sees itself on track to build a network of 1,000 outlets, including 200 international stores, by 2020.