Figaro Coffee [FCG 0.83, up 1.2%; 117% avgVol] [link], the Jerry Liu-owned and Justin Liu-led restaurant company, confirmed a report that FCG has selected an investment bank to assist with finding potential investors, saying that its desire to find new investors was previously disclosed. The report also claimed that Monde Nissin [MONDE 7.77, down 0.1%; 90% avgVol] was seeking to sell its 15% stake in FCG that it purchased in 2023 for P820.3 million. FCG said that it “has no information nor knowledge on this matter”, and further said that it is “not in a position to confirm nor clarify the plans of MONDE regarding its investment in [FCG].” The value of MONDE’s stake has fallen nearly 20% in the two years since it was purchased.
MB bottom-line: While MONDE didn’t confirm its intent to sell in the report, MONDE did say at its last analyst briefing that it was trying to “look for an exit” because its attempts to bring the FCG brand into the consumer segment had “not been successful.” FCG’s price is actually lower now than it was during the time of that briefing, so I can’t imagine MONDE has sweetened on its position in FCG. All I know is that FCG might find it difficult to raise money through a stake sale if MONDE is also working the phones trying to pitch a similar sale. It doesn’t sound like the two companies are working together, so I suspect that any buyer would likely receive a better price due to the excess of shares out there on offer between the float, FCG, and MONDE.
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