Max’s acquires Pancake House, eyes backdoor listing?



The Max’s Group of Companies is now the owner of Pancake House Holdings Inc. (PCKH), a publicly listed company in the Philippine Stock Exchange, after Max’s paid PCKH owners close to P3.9 billion,  in a transaction described by market analysts as Max’s prelude to backdoor listing.

Max’s acquires 60.37% of Pancake House for P3.9 billion

On December 20, Pancake House Holdings Inc. (stock code: PCKH) announced that its principal shareholders have agreed to sell to the Max’s Group all of its shares in the company at a price of P15.00 per share.

The transaction, valued at close to P3.9 billion, will give the Max’s Group 60.37% equity in PCKH representing all shares owned by the original Pancake House owners.

Max’s to buy other PCKH shares for P15.00

The P15.00-per-share acquisition price represents a premium of 6.4% over PCKH’s closing price of P14.10 a day before the transaction. On December 20 when the acquisition was announced, Pancake House requested for an hour-long trading halt and when trading resumed, its stock price surged 22% to close at P17.20.

Today, December 23, PCKH’s stock price is down 11.6% trading at P15.20 after the midday market recess.

Part of the conditions of the acquisition is a tender offer by Max’s Group to acquire the remaining shares of PCKH from minority stockholders. Max’s will offer the same acquisition price of P15.00 to those shareholders holdings PCKH shares. The tender offer will commence in January 2014.

Max’s going public via backdoor listing?

Market analysts believe Max’s acquisition of Pancake House may be a prelude for Max’s backdoor listing, an alternative way to go public.

Backdoor listing occurs “when a listed company acquires or merges or combines with an unlisted company, or when a listed company is acquired by, merged or combined with an unlisted company, and which acquisition, merger or combination results in a substantial change in the business, membership or the board of directors, or voting structure of the listed company.”

Backdoor listing is one of several alternatives for a company to go public, including initial public offering (IPO) and listing by way of introduction.

Pancake House and Max’s Group company details

The Pancake House Group of Companies started in 1974 and currently has 105 outlets of its flagship brand Pancake House. It also owns 300 outlets of other restaurant brands such as Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Sizzlin’ Pepper Steak, Le Coeur De France, The Chicken Rice Shop, Maple and its most recent acquisition, Yellow Cab.

The Max’s Group of Companies, meanwhile, operates 150 Max’s Fried Chicken stores in the Philippines and abroad. The company also owns the country territory franchise for international food brands such as Krispy Kreme and Jamba Juice.

Related stories:

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

Leave a Comment