Monde Nissin buys stake in Figaro to boost growth

Listed Monde Nissin Corp., maker of instant noodles and biscuits, has acquired a 15 percent stake in Figaro Coffee Group inc. for P820.26 million.

In its disclosure to the Philippine Stock exchange, Monde Nissin, which manufactures Lucky Me! noodles and Skyflakes biscuit, is buying 820.26 million unissued common shares of Figaro for P1 apiece, a premium from its trading price of P0.90 per share.

Proceeds of the subscription will be used by Figaro to finance its expansion plans, the companies said.

“We are excited with the opportunity to become shareholders in the Figaro Coffee Group as it provides a greater exposure to the food service sector which we view as a potentially attractive avenue for further growth both here in the Philippines and abroad,” henry Soesanto, Monde Nissin’s CEO, said.

“Additionally, we believe our scale may help enhance the procurement capabilities of the Figaro Group which is rapidly growing. We look forward to working with the Figaro Group management team and potential future collaborations that this new relationship may offer.”

“We welcome this partnership with Monde Nissin as we believe a combination of their leadership in the food sector, strength in manufacturing and timeless brand equity, combined with our fast-growing store network and brand strength will yield excellent opportunities for Figaro Coffee Group to solidify its position as a very strong and stable F&B [food and beverage] company,” Figaro Chairman emeritus Jerry Liu said.

Figaro wholly owns Figaro Coffee Systems Inc., a company that operates and franchises a network of restaurants. These include Figaro Coffee, a coffee shop with domestic and international branches; Angel’s Pizza; Tien Ma’s, a Taiwanese cuisine restaurant; The Figaro Group (TFG) express outlet, a multi-brand kiosk selling the top products of FCSI’S other restaurants; and Café Portofino, an outlet which primarily serves beverages and bakery items.

Monde Nissin, meanwhile, is a global F&B company headquartered in the Philippines, with a portfolio of iconic and market leading brands across fast-growing categories.