Tag: Philippines

Philippines: Jollibee Takes 100% Ownership of US Burger Chain Smashburger

Philippine-based Jollibee Foods Corporation (JFC), the largest Asian food service company, announced that it has completely acquired US burger chain Smashburger by acquiring the 15 percent stake it does not own in SJBF LLC, the parent company the entities comprising the Smashburger business for $10 million.

Jollibee paid Smashburger Master LLC in cash through its wholly-owned subsidiary Bee Good! Inc (BGI), according to its disclosure to the Philippine Stock Exchange.

Bee Good! Inc previously held 85-per cent stake in the burger chain after acquiring an additional 45-per cent stake for $100 million, paid in cash, last February.

Smashburger has 351 stores, mostly in the US, and has presence in Canada, Costa Rica, Egypt, El Salvador, Kuwait, Panama, Saudi Arabia, and the United Kingdom. It accounts for 7 per cent of JFC’s consolidated system-wide sales.

JFC further disclosed that it will inject more capital into the Smashburger business by converting $80 million loan held by Bee Good! Inc on Smashburger into equity before the end of this year in order to strongly support its growth in 2019 and in the years ahead.

“We look forward to the development of Smashburger into a very strong brand and business in the United States,” said JFC chairman Tony Tan Caktiong.

Additionally, JFC disclosed that Smashburger co-founder and chief executive officer Thomas Ryan will remain as the CEO of the burger chain. He has also been appointed JFC’s chief product development advisor effective immediately.

JFC’s country head for North America, Jose A. Minana, will also assume additional responsibility as president of Smashburger. His new responsibilities include introducing JFC’s business management system into Smashburger and prepare it for a strong sustained growth in the US.

The consolidation of Smashburger into JFC increases the Philippine-headquartered fast-food chain’s worldwide store network by 365 stores to a total of 4,162. This also expands JFC’s geographical presence from 16 countries to 21 adding Costa Rica, Egypt, El Salvador, United Kingdom (England and Scotland), and Panama. – AsiaPEVC.com

Also Read:
Philippines: Cebu Pacific To Acquire Five Airbus A320neo
Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

Philippines: Cebu Pacific To Acquire Five Airbus A320neo

Listed Philippine carrier Cebu Pacific continues to ramp-up its fleet with the confirmed addition of five Airbus A320neo (new engine option) aircraft.

Deliveries of the aircraft will commence in the first half of 2019 and will be completed within the same year.

The five additional A320neo aircraft is on top of its order of two more A321ceo, 32 Airbus A321neo, and six ATR 72-600 aircraft, which are scheduled for delivery between 2018 and 2022. The additional aircraft will be used to support the carrier’s expansion plans.

“We see expansion opportunities in new markets, as well as pent-up demand in areas where we currently operate. The introduction of the first new generation, fuel-efficient A320neo aircraft to the Philippine market will help us to further strengthen our position in the Philippines and allow us to further pursue expansion of our international route network. From this year until 2022, we are adding an average of nine new aircraft per year to our fleet,” said Alexander Lao, Vice President for Commercial Planning of Cebu Pacific.

“With higher seat capacity and much greater fuel efficiency, the A320neo will enable us to fly further and more economically. It’s the perfect addition to our fleet, allowing us to offer even more compelling fares to more passengers.”

The single-aisle A320neo aircraft for Cebu Pacific will be equipped with the Pratt & Whitney PurePower PW1100G-JM geared turbofan, the aircraft has a maximum range of 6,300 kilometers but burns up to 20% less fuel.

Cebu Pacific will acquire the five aircraft via an Operating Lease Agreement signed with Avolon Aerospace Leasing Limited, one of the largest aircraft leasing companies in the world.

This is second lease agreement between Cebu Pacific and the Dublin-based Avolon following the placement of three Airbus A330-300 aircraft with the carrier.

Also Read: Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

Cebu Pacific has one of the youngest fleets in the world, with a total of 67 aircraft with an average age of 4.8 years.

The CEB fleet is comprised of 36 Airbus A320, five Airbus A321CEO (Current Engine Option), and eight Airbus A330; as well as a fleet of eight ATR 72-500 and ten ATR 72-600 aircraft, operated by subsidiary Cebgo.

Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

Aboitiz Equity Venture (AEV)’s food subsidiary Pilmico International Pte Ltd (Pilmico International) announced its acquisition of a majority stake in one of Asia’s largest privately-owned agribusiness corporations, Gold Coin Management Holdings Limited (Gold Coin), as it expands its animal feeds business in the Asia – Pacific region.

Pilmico International is a wholly owned subsidiary of AEV through its Singapore-based holding entity, AEV International.

Pilmico International signed a share purchase agreement with British Virgin Islands -based Golden Springs Group, Ltd. (GSG) for 75% equity interest in Gold Coin.

The consideration is based on an enterprise value of US$413 million, which is equivalent to 75% of the total enterprise value of US$550 million. After deducting cash-like adjustments, the final cash consideration is US$334 million. The transaction will be funded through financing from foreign banks.

Pilmico International was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares from its holding company, GSG. Gold Coin, which is based in Singapore, is a major producer of animal feeds and operates 20 livestock and aqua feed mills across 11 countries in Asia.

“ASEAN’s market size of over 500 million will bring many opportunities to expand our customer base. This acquisition serves as a platform towards achieving Pilmico’s strategy to grow our core feed milling business beyond ASEAN and now across Asia. This acquisition will add three million metric tons of volume which quadruples our overall feeds production capacity.” said Sabin M. Aboitiz, AEV Chief Operating Officer and Pilmico President and Chief Executive Officer.

The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region to date.

Also Read:
Hong Kong: Australia’s CTM Acquires HK-based Lotus Travel Group
On-demand Logistics Platform GoGoVan Raises $250m

Pilmico International’s first ASEAN venture was in Vietnam in 2014 when it bought a 70% stake in Vinh Hoan Feeds (VHF), one of the country’s major aquafeed manufacturer. In 2017, it bought an additional 15% stake in VHF, effectively increasing its stake to 85%.

Driven by its strategy to widen its footprint in Vietnam and diversify product portfolio, in September 2017, Pilmico International bought a 70% stake in Europe Nutrition Joint Stock Company (Eurofeed), an animal feeds manufacturer.