Max’s buys Pancake House

Controlling stake acquired for about P3.5 billion

THE MAX’S restaurant group has completed its acquisition of a controlling stake in Pancake House, creating a big casual dining chain conglomerate in the country.

After a tender offer to minority shareholders, Max’s ended with 89.95 percent control of Pancake House, leaving enough public float to comply with the 10 percent minimum public ownership required to remain listed on the stock exchange.

As the buyout deal valued 100 percent of Pancake House at P3.9 billion, the new controlling shareholder group acquired the 89.95 percent stake for some P3.5 billion.

Based on a disclosure to the Philippine Stock Exchange, the Max’s group completed a tender offer for publicly held shares in Pancake House resulting in the purchase of all the 39.98 million shares that were tendered by the public shareholders. The Max’s Group also completed an acquisition of 193.18 million shares from the Lorenzo group, the former controlling shareholder of Pancake House.

The tender offer is in compliance with corporate regulations after the Max’s group struck a deal to buy about 76.7 percent of Pancake House at P15 per share. Minority shareholders were given the option to sell at the same price.

“The Max’s group is extremely excited about having completed another milestone in the Philippine restaurant industry,” Robert Trota, chief executive officer of Pancake House, said in a statement.

“We appreciate everyone’s enthusiasm for what we can do to build our casual dining brands together, execute a business strategy that delivers consistently high quality food with exceptional customer service. Together, we look forward to growing our businesses in the Philippines and globally,” Trota added.

Lorenzo was replaced as company chair by Sharon Fuentebella while Robert Trota was named president and chief executive officer.

The investment in Pancake House was made byMax’s Kitchen Inc. (controlled by the Fuentebella family), Chicken’s R Us Inc. (mostly owned by the Trota family), Max’s Express Restaurants Inc., Square Top Inc., No Bia Inc., Max’s Bakeshop Inc., The Real American Doughnut Co. Inc., Room Ventures Corp., Trota Gimenez Realty Corp. and MGOC Holdings.