MAX’S GROUP, Inc. (MGI) is merging two of its subsidiaries in line with its goal to maximize operational synergies across its businesses.
In a disclosure to the stock exchange on Wednesday, MGI said the Securities and Exchange Commission (SEC) has approved the merger of its wholly owned units, The Real American Doughnut Company, Inc. and Fresh Healthy Juice Boosters, Inc., with the former as the surviving entity.
“The resulting transaction is aligned with on-going reorganization initiatives to maximize operational synergies across the business and does not adversely impact existing shareholders,” the company said.
Last June, the listed casual dining restaurant operator also consolidated operations of its wholly owned subsidiaries Teriyaki Boy Group, Inc. (TBGI) and Yellow Cab Food Corp. TBGI was the surviving firm after the merger, which was also undertaken to improve operational efficiencies within the company.
MGI said it will be ramping up franchising efforts to fast-track its expansion to 1,000 stores until 2020, targeting to get a 65% to 35% mix of franchised versus company-owned stores. The company ended 2017 with a total of 673 stores located in the country, as well as overseas markets North America, the Middle East, and Asia.
It operates stores under various brands, namely Max’s Restaurant, Pancake House, Yellow Cab, Krispy Kreme, Jamba Juice, Teriyaki Boy, Dencio’s, Maple, Meranti, Kabisera, Le Coeur de France, Singkit, and Sizzlin’ Steak.
Shares in MGI closed 32 centavos or 2.49% lower to P12.54 apiece at the stock exchange on Wednesday. — Arra B. Francia