MAX’S Group Inc., the operator of hundreds of casual-dining restaurants in the country, said it recommended to its board the folding-in of US-registered eMax’s Llc.into the company’s integration process.
The company said the transaction will allow Max’s to consolidate all revenues generated from franchising operations of Max’s outlets in North America, mainly in the US and Canada. As of June, it has about 12 stores, all of which are Max’s restaurants.
“This transaction will allow the company to consolidate all revenues generated from franchising operations of Max’s outlets in North America,” the company said.
eMax’s is registered in Colorado, USA, and is engaged in the granting of franchises for the development and operation of restaurants under the Max’s brand name within North America. The company holds the franchise and intellectual-property rights for Max’s restaurants in the region, and is owned by certain principal owners of the Philippine parent company.
“Such an acquisition will allow all shareholders of MGI to benefit from the expected growth of the Max’s restaurant business in North America, consistent with the company’s strategy and rationale for the integration,” the company said in its disclosure to the Philippine Stock Exchange.
Previous to the integration process, which followed after it acquired Pancake House Inc., the Max’s Group was composed of about a dozen companies.
The proposal will be submitted for approval of the board of directors of eMax and Max’s Group during the fourth quarter of the year.
Last year eMax’s reported sales reaching $630,782, or equivalent to P28.23 million.
Max’s opened its first store in the US in 1982 in San Francisco, California, and then another store opened in Los Angeles two years later.
Max’s Group is hoping to raise as much as P4.6 billion from its follow-on offering to be held possibly before year-end, proceeds of which will be used to expand its store network and pay off its debt.
The company said it plans to raise P3.5 billion from the primary share, while selling shareholders would indicatively raise P500 million from the secondary-share, tranche and another P600 million from its overallotment option.
“Net proceeds from the primary offer will be used to fund the expansion of stores and commissaries, finance capital expenditures, working capital and other general corporate purposes.
The proceeds from the sale of shares by the company’s subsidiaries shall be used to repay a portion of the debt incurred by them when they acquired a controlling interest in the company,” Max’s said.
The company said it is offering a total of 300.13 million common shares, consisting of up to 34.1 million new shares to be issued out of the authorized and unissued capital stock of the company.
The shares were being offered at an indicative price of P29.50.
Some 204.63 million will be issued out of the shares held and to be sold by certain wholly owned subsidiaries of the corporation and up to 61.39 million issued shares to be sold by certain selling shareholders.