Processed food conglomerate Century Pacific Food Group is set to exit the Philippines-based owner of the local Shakey’s pizza franchise when it lists on the stock exchange, Reuters reported on Tuesday.
Shakey’s Pizza Asia Ventures (Spavi) aims to raise P3.96bn ($79.7 million) when it lists on the Philippine Stock Exchange on December 15. Shares in Spavi will be sold at P11.26 each, Eduardo Francisco, president of Spavi’s financial adviser BDO Capital and Investment, told Reuters.
The initial public offering will provide an exit for both Century Pacific Food Group and Singapore’s sovereign wealth fund GIC, which partnered in March 2016 to buy the Shakey’s franchise for an undisclosed sum from the Prieto family, who also own the Dunkin Donuts franchise in the Philippines.
Founded in 1954 by entrepreneur Sherwood “Shakey” Johnson, Shakey’s began as a pizza parlour and live music venue in Sacramento, California. The US-based chain launched in the Philippines in 1975, when food giant San Miguel opened a Shakey’s branch in Manila to promote their eponymous beer brand.
A group led by sports executive Leo Prieto acquired the local franchise from San Miguel in 1987, and in 2014 the Prieto family bought the Shakey’s trademarks in the Middle East and Asia, excluding Japan, Malaysia, China, Australia and Oceania.
The Prieto-controlled company that owned Shakey’s changed its name to Shakey’s Pizza Asia Ventures in March 2016, when GIC and Century Pacific, the holding company of the Po family, bought the business.
The Shakey’s acquisition is the second transaction involving GIC and Century Pacific, according to Reuters. GIC turned a P3.38bn loan into a 10% stake in Century Pacific Food in May 2014.
The offer period for Spavi shares will last from December 2 to 8.
– A version of this article first appeared on our sister site Global Government Venturing.