Shakey’s Pizza takes in Gokongweis as strategic investor

Casual-dining restaurant chain Shakey’s Pizza Asia Ventures Inc. (SPAVI) is taking in the Gokongwei family as its new strategic investor in a bid to strengthen its post COVID-19 expansion plans.

In a disclosure to the Philippine Stock Exchange on Tuesday, SPAVI said its board of directors approved the entry of the new strategic investor through the issuance of 152,439,025 new primary shares.

With this, starting June, JE Holdings – a private investment company of the Gokongweis – is set to join the Po family’s private holding company Century Pacific Group and the sovereign wealth fund of Singapore as a top shareholder of SPAVI.

JE Holdings is set to infuse P1.25 billion into the company in exchange for newly issued shares, resulting in an approximately 9% ownership stake in SPAVI.

The infusion is equivalent to a purchase price of P8.20 per share - a 10% premium over the company’s latest stock price and 14.6% higher than the latest 45-day volume weighted average.

“We look forward to the entry of the Gokongwei family and we in management are grateful for their belief in our business and our brands,” said Vicente Gregorio, president and CEO of SPAVI.

“Despite the short-term challenges, we too remain optimistic about our long-term prospects and, as result, have begun investing again in our stores, our people, and our various operating capabilities. We believe that we are in a relatively good position financially and, with the added benefit of a new strategic investor, we plan to make the most of both the fresh round of capital and the various synergies that come along with partnering with the Gokongwei group of companies,” Gregorio said.

SPAVI said JE Holdings’ entry comes at a time of recovery in both the company’s sales and profitability coming from lows experienced during the height of COVID-19 related lockdowns.

At the company’s stockholders’ meeting in July, Lance Gokongwei, chairman and president of JE Holdings, will be up for election as a member of SPAVI’s nine-seat board of directors.

“I’ve always been a fan of the Shakey’s brand and look forward to working with both the Board and management to further the company’s growth and restart expansion plans in anticipation of the inevitable reopening of our economy. I strongly believe in the long-term prospects of the food service industry, against a backdrop of rising Filipino incomes, and I have confidence that Shakey’s will continue to be a leader in this space,” Gokongwei said.

For his part, Christopher Po, chairman of SPAVI said, “I support Lance’s election to our board as he brings with him a wealth of experience and a variety of perspectives stemming from his diversified set of business interests.”

“While our current balance sheet remains healthy, I look forward to further strengthening our financial position, with the new capital giving us additional flexibility at a time when many organic and inorganic opportunities have started to open up. As we are now firmly on the path of recovery, our sights are set on growth and expansion, and I thank the Gokongwei family for their trust and confidence in our long-term plans,” Po said.—AOL, GMA News