Udenna mulls sale of Conti’s, Wendy’s

MANILA, Philippines — Dennis Uy’s Udenna Group is open to exploring all opportunities for his different businesses, including a sale.

The Davao-based businessman is contemplating on selling Conti’s Bakeshop and Restaurant and the Wendy’s fast-food chain, according to Reuters, citing multiple sources.

“We are always exploring opportunities that would be beneficial for the group.” said Leo Venezuela, head of Udenna’s Investor Relations Office.

He did not discuss the Reuters report.

Udenna is in talks with at least one financial adviser on potentially selling both businesses together, three sources with direct knowledge of the matter said.

The deal could fetch as much as $200 million for the two assets combined, two of the sources added, the Reuters report said.

“The sources declined to be identified as they were not authorized to speak to the media.  Udenna owns Wendy’s and Conti’s through its food subsidiary Eight-8-Ate Holdings, according to its website.

Uy, a friend of former president Rodrigo Duterte, started the aggressive expansion of his business empire in 2016.

He bought a 70 percent stake in Conti’s in 2018 for an undisclosed sum, according to its website.

“A year later, it acquired all of Wendy’s restaurants in the Philippines, becoming the master franchisee of the fast-food chain in the country. It did not provide financial details on the purchase. Conti’s owns 70 stores in the Philippines. Its founding owners hold a minority stake in the company. Wendy’s has 52 stores in the Philippines, mainly in the capital,” Reuters said.

During the pandemic, however, Udenna, like other businesses, felt the devastating impact of the economic slowdown.

Thus, Uy had to resort to selling his assets.

Another source said “he is selling everything.”

He also sold his stake in the Malampaya deep-water gas-to-power project in offshore Palawan, touted as the country’s energy crown jewel, to Enrique Razon’s Prime Infrastructure Capital Inc.

Prime Infra has  recently obtained the green light from the Department of Energy (DOE) to acquire the stake.

The DOE gave its approval to the transfer of shares by Shell Petroleum N.V. of all shares in Shell Philippines Exploration B.V. to Malampaya Energy XP Pte. Ltd. (MEXP), a subsidiary of Razon’s Prime Infra.

As a result of the transaction, SPEX will become a wholly owned subsidiary of Prime Infra.