Monde Nissin to buy 15% stake in Figaro Coffee Group
MANILA, Philippines — Food giant Monde Nissin Corp. will acquire a 15% stake in Figaro Coffee Group, as the two companies take advantage of their clout in the food market to drive growth.
Under the transaction, Monde Nissin will purchase the shares in Figaro for P1 each, bringing the total value of the transaction to P820.3 million, the two companies told the stock exchange on Thursday.
The 820.3 million common stocks to be sold to Monde Nissin will come from Figaro’s “existing authorized and unissued capital stock.” The Philippine Stock Exchange said the transaction would be covered by the rule on additional listing of securities, meaning Figaro would have to ask for the approval of stockholders first before the shares can be listed.
As of 9:31 a.m., shares in Monde Nissin were down 0.14% while trading of Figaro stocks was halted for an hour.
Figaro will use the proceeds from the share sale to finance its expansion plans. The company operates The Figaro Group Express and the popular pizza brand Angel’s Pizza.
For Monde Nissin — the maker of household staples such as Lucky Me! Instant Noodles and Nissin Wafers — the deal “provides a greater exposure to the food service sector which we view as a potentially attractive avenue for further growth both here in the Philippines and abroad,” Henry Soesanto, company CEO, said in a statement.
“Additionally, we believe our scale may help enhance the procurement capabilities of the Figaro Group which is rapidly growing,” he added.
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