Gokongwei family to buy-in to 9% ownership of Shakey’s for ₱1.25 billion via JE Holdings

The Gokongwei family is diversifying into the full-service restaurant business through a buy-in deal to invest ₱1.25 billion in Shakey’s Pizza Asia Ventures Inc.

The Gokongwei family is buying new shares in Shakey’s for ₱8.20 per share via private investment firm JE Holdings in exchange for a 9% ownership. This buy-in deal will make the family a strategic partner of both Po family-led Century Pacific Group and sovereign wealth fund Singapore GIC.

Shares of Shakey’s advanced by 6.3% to close at ₱7.93 per share at the local stock market on Wednesday signaling a welcome entry of the Gokongwei group.

At the stockholders’ meeting of Shakey’s this coming July, JE Holdings chair and president Lance Gokongwei will be up for election to the nine-seat board of directors.

“I’ve always been a fan of the Shakey’s brand and look forward to working with both the board and management to further the company’s growth and restart expansion plans in anticipation of the inevitable reopening of our economy. I strongly believe in the long-term prospects of the foodservice industry, against a backdrop of rising Filipino incomes, and I have confidence that Shakey’s will continue to be a leader in this space,” said Gokongkwei.

“While our current balance sheet remains healthy, I look forward to further strengthening our financial position, with the new capital giving us additional flexibility at a time when many organic and inorganic opportunities have started to open up. As we are now firmly on the path of recovery, our sights are set on growth and expansion, and I thank the Gokongwei family for their trust and confidence in our long-term plans. We are eager to welcome them into our wow-ing business and culture,” said Shakey’s chair Christopher Po.

Prior to heading his family’s businesses, Po had worked at the Gokongwei family-led conglomerate JG Summit Holdings as head of corporate planning and development.

Shakey’s posted a net profit of ₱29 million in the first quarter, achieving a positive bottom line for the second straight quarter following an improvement in mobility and structural adjustments to operations. Net profit declined by 75% compared to the same period last year but improved by 22% from the previous quarter.

Since opening its first store in the Philippines in 1975, Shakey’s now has 242 branches across the country and is currently valued at around ₱11.42 billion in the stock market.

SOURCE: Inquirer