Hong Kong-based First Pacific’s managing director Manuel Pangilinan, who also chairs Philippine Long Distance Telephone Co. (PLDT), told the STAR that as far as he knows, BK Titans will not limit its operations to running the Burger King franchise.
In a telephone interview, he said that he made the investment in BK Titans in his personal capacity after he was invited by Airfreight chairman Bert Lina to join the group that acquired the Burger King franchise for a still undisclosed amount.
Persons close to Pangilinan revealed that his personal equity portfolio consists mostly of shares in PLDT and a P1 million equity investment in Asian Eye Institute.
Other than his PLDT shares, the investment in BK Titans is probably Pangilinan’s second biggest personal investment in the country. When asked what percent of BK Titans he owns, he said "it’s not small but it’s not large."
Ayala Corp. sold its Burger King business via the transfer of its majority ownership in PFN Holdings Corp. The exclusive business of PFN is its 100-percent ownership in Perf Restaurants Inc., a franchisee of BK Pte Ltd. that runs the Burger King chain.
In a statement, Ayala Corp. explained that the sale of PFN is consistent with its strategy to focus on its core businesses which include real estate (Ayala Land), financial services (Bank of the Philippine Islands), telecommunications (Globe Telecom), utilities (Manila Water), and electronics (Integrated Microelectronics).
Ayala in 2001 sold Purefoods Corp. to San Miguel Corp., signalling its exit from the food business. Since that time, Ayala and BK Asiapac had been looking for buyers for the hamburger chain which had difficulty competing with Jollibee and McDonald’s. Burger King runs only 22 branches in the Philippines compared with over 500 for Jollibee and more than 250 for McDonald’s.
The Burger King system operates more than 11,000 restaurants in all 50 states of the US and in more than 65 countries and US territories worldwide.
It said that BK Titans acquired the business because it understood and appreciated market opportunities, the quality and dedication of its employees, and the support of business partners. "The buyers also fully support the strategy of BK AsiaPac and its programs to make the Burger king brand stand out in the market," Ayala Corp. added.
BK Asiapac president Peter Tan said they look forward to working with BK Titans toward strengthening the Burger King franchise in the Philippines and are confident that the brand’s strength, combined with the passion and commitment of the principals of BK Titans, will provide the foundation for future growth.
As early as 2002, Ayala has already written off its investments in Burger King and booked provisions of P300 million.