The Pos and Gokongweis Buy Out Singapore Group's Stake in Shakey's for P2.68 Billion
Companies controlled by the Po and Gokongwei families have bought out the stake in listed food company Shakey’s owned by Singapore’s sovereign wealth fund GIC for a total of P2.68 billion.
Of the 283 million shares held by GIC unit Arran Investment Pte Ltd, representing 16.8 percent of Shakey’s Pizza Ventures Inc., the Pos’ Century Pacific Group, Inc. (CPG) purchased 185 million shares, increasing its stake in the company to 62 percent. The remaining 98 million shares were bought by the Gokongweis’ JE Holdings, Inc. (JE), which, in turn, upped its ownership in Shakey’s to 14.9 percent.
The shares were sold at P9.50 a piece for a total price of P2.688 billion.
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“Shakey’s Pizza is deeply grateful for the trust of our shareholders, both outgoing and current,” said Vic Gregorio, President and Chief Executive Office of PIZZA in a filing with the Philippine Stock Exchange. “They have been very supportive of our growth plans, especially when we were prudently navigating through the pandemic and when we boldly entered new grounds, and have helped propel the company to greater heights through the years.
“We also thank the Po and Gokongwei families,” Gregorio added. “We take this as a sign of your confidence in the business and our growth ambitions. As we move forward, we will continue to manage your capital responsibly and with integrity to create more value for all our stakeholders.”
Explaining his company’s decision to purchase GIC’s stake in Shakey’s, Lance Gokongwei, chairman and president of JE Holdings said, “Since being elected in 2021 as a Board Member of PIZZA, I have seen the Company navigate through a pandemic and emerge from it a better, more diversified group. This gives me confidence in the Group’s vision and capability to execute. We are pleased with the opportunities that lie ahead, strongly support PIZZA’s expansion in the years to come, and look forward to creating synergies with the Gokongwei Group.”
JE Holdings entered Shakey’s as a strategic investor in 2021, infusing P1.25 billion in capital to support organic and inorganic opportunities.
Meanwhile, Shakey’s chairman Chris Po said, “GIC had been with Shakey’s prior to our IPO in 2016. As strategic investors, they have been big supporters and have added value to the company. Thus, in turn, I am pleased that the Company was able to generate gains for them. I am also grateful for the opportunity to increase our investments in PIZZA as we are firm believers and are excited by our future prospects. We are also grateful to the Gokongwei family for their belief in our company and the additional investment.”
Shakey’s, which is known by its ticker symbol PIZZA in the PSE, has expanded its portfolio in recent years. Its most recent high-profile acquisition was of Potato Corner in December 2021.
The Shakey’s group currently has nearly 2,000 stores and outlets globally, spanning 5 Wow Brands, which includes flagship brand Shakey’s, Peri-Peri Charcoal Chicken and Sauce Bar, the master franchise in the Philippines of Taiwan-based R&B Milk Tea, Project Pie, and Potato Corner.
The Shakey’s Group reported systemwide sales for the first six months of 2023 increased by 51 percent compared to last year, while net income almost doubled with 96% growth year-on-year. The company said it expects to end the year with over 30 percent growth in both revenues and net income.
