SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) said on Wednesday it is set to receive a P1.25-billion investment from Gokongwei-led JE Holdings, Inc., which will become one of its stakeholders.
SPAVI said in a regulatory filing that JE Holdings, a private investment firm of the Gokongwei family, will infuse the amount in exchange for 152.44 million new primary shares equivalent to around 9% ownership stake.
“This equates 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,” SPAVI said in the disclosure.
“JE Holdings’ entry comes at a time of recovery in both SPAVI’s sales and profitability coming from lows experienced during the height of COVID-19-related lockdowns,” it added.
SPAVI said Lance Y. Gokongwei, JE Holdings chairman and president, will also be up for election as a member of the company’s board of directors during its stockholders’ meeting in July.
Vicente L. Gregorio, SPAVI president and chief executive officer, said the company remains optimistic in its long-term prospects and is looking forward to the entry of the Gokongwei family.
“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,” Mr. Gregorio said.
“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,” SPAVI Chairman Christopher T. Po said.
Separately, SPAVI announced in a separate regulatory filing on Wednesday that recorded a first-quarter net income of P29 million, lower by 75% from its P114-million after-tax income a year earlier.
The company’s net revenues fell 30% to P1.28 billion from P1.84 billion, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 31% to P240 million.
SPAVI’s system-wide sales for the first quarter reached P1.7 billion, a 28% decline from P2.31 billion in 2020.
“Though sales were down 28% year on year, this recovery rate nonetheless represents a 500-basis point improvement versus that of the previous quarter,” the company said in the disclosure.
SPAVI said dine-in sales fell in the first quarter due to the seasonality aspect of the restaurant industry, together with fears of stricter quarantine protocols and more contagious variants of the coronavirus disease 2019 (COVID-19).
Amid lower dine-in sales, the company said its delivery and carryout sales posted double-digit year-on-year growth and carried the business during the period.
Mr. Gregorio said the ongoing pandemic still heavily affects the restaurant sector, with consumers choosing to stay at home or experiencing difficulties due to the country’s economic situation.
“The latter part of this quarter also saw the re-imposition of stricter measures to curtail dine-in, disrupting the part of our business which was experiencing a relatively good trajectory before then,” he said.
During the first quarter, SPAVI said it opened eight net new stores as part of its goal to open a net of 30 new stores this year, excluding ghost kitchens or delivery support.
“These new branches will follow a smaller format and will be geared to service both in-store and out-of-store consumption in response to guests’ emerging needs for fast, convenient, and safe dining experiences,” the company said.
On Wednesday, shares of SPAVI at the stock exchange improved 6.3% or 47 centavos to end at P7.93 apiece. — Revin Mikhael D. Ochave
