Shakey’s Pizza Asia Ventures Inc., the pizza restaurant chain owned by the Po family, on Wednesday said the private investment company of the Gokongweis will become its minority shareholder starting next month after infusing some P1.25 billion into Shakey’s.
In its disclosure, Shakey’s said JE Holdings has bought some 9 percent of the pizza parlor chain. The acquisition price is about P8.20 per share, a 10-percent premium from its stock price and 14 percent higher than the 45-day volume weighted average, the company said.
Shakey’s shares closed at P7.93 apiece on Wednesday.
“Despite the short-term challenges, we too remain optimistic about our long-term prospects and, as result, have begun investing again in our stores, our people, and our various operating capabilities,” Vicente Gregorio, the company’s president and CEO, said.
“We believe that we are in a relatively good position financially and, with the added benefit of a new strategic investor, we plan to make the most of both the fresh round of capital and the various synergies that come along with partnering with the Gokongwei group of companies.”
Lance Gokongwei, chairman and president of JE Holdings, will take one board seat in Shakey’s 9-member board, and will be ratified during its stockholders’ meeting in July.
“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 food service industry, against a backdrop of rising Filipino incomes, and I have confidence that Shakey’s will continue to be a leader in this space,” Gokongwei said.
“I support Lance’s election to our board as he brings with him a wealth of experience and a variety of perspectives stemming from his diversified set of business interests,” Christopher Po, the company’s chairman, said.
Shakey’s income for the three months ending March 31 fell 74 percent to P28.72 million from last year’s P113.58 million.
Revenues declined 30 percent to P1.28 billion from last year’s P1.83 billion but the company said its numbers were improving compared with the previous quarter.
The company has restarted its store network expansion plans, with the opening of 8 net new stores during the first three months of the year, putting it on track to hit its 30 net new store target, which excludes ghost kitchens or delivery support.
These new branches will follow a smaller format and will be geared toward servicing both in-store and out-of-store consumption in response to guests’ emerging needs for fast, convenient, and safe dining experiences.
“This pivot in our store expansion strategy will allow us to widen our reach while reducing the cost of investment and maintaining our short payback periods,” Gregorio said.
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