Bangkok--16 Oct--Minor International
Minor International (MINT) is pleased to announce that it has acquired a 6% equity stake in S&P Syndicate (S&P) and entered into a Memorandum of Understanding with four shareholders of S&P to acquire an additional 14% stake a through a private transaction. These shareholders are from S&P's founding Sila-On and Raiva families. Despite selling a 14% stake to MINT, the Sila-On and Raiva families will retain a major stake in S&P and the four shareholders, who are directors and key executives of the company, will continue to manage all aspects of the S&P's food production and restaurant service business. MINT will cooperate with S&P management to leverage potential technical and operational synergies in areas such as marketing, supply chain management and human resources.
The investment in S&P provides MINT with exposure to a large, vertically integrated food production and distribution business with a strong brand name and significant growth potential. S&P is listed on the Stock Exchange of Thailand and is one of Thailand's largest food production and restaurant companies with more than 230 restaurant and bakery shops operating under the S&P and other brand names. In 2005, S&P posted sales and earnings of Baht 3,361 million and 204 million, respectively and achieved 11% EPS growth. MINT will work with S&P management to explore ways to expand both MINT's and S&P's food businesses by cooperating in areas such as international franchising, home delivery, distribution, advertising, materials supply, purchasing, logistics and training.
MINT will invest Baht 205 million to acquire approximately 4 million shares at a price of Baht 29 per share and approximately 8 million warrants at a price of Baht 11 per share from the four shareholders. With an existing 6% equity stake in S&P and upon conversion of the warrants, MINT expects to ultimately hold a 19.9% equity stake in S&P at an average price of Baht 27.7 per share. The transaction is subject to MINT Board of Directors approval and is expected to take place on or before November 14.
S&P Syndicate (S&P) operates a restaurant and bakery business, which includes the distribution of products under the S&P name. S&P operates more than 230 restaurants and bakeries in Thailand under the S&P, Patio, Patara, Vanilla, Golden Dragon, and Bluecup Coffee brands. S&P also produces and distributes bakery products, frozen prepared foods, sausage and ham products, pasta, food colourings and essences used in the food industry which are sold under the S&P, Delio, Patio, Vanilla, Bluecup and Royallee brand names. For more information on S&P, visit www.sandp.co.th .
Minor International (MINT) is Thailand's largest food service operator with 607 outlets system wide under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, and LeJazz brands. It is one of Thailand's leading hotel operators with a portfolio of 13 hotels and approximately 2,300 rooms under the Marriott, Four Seasons, Anantara, and Minor International brands in Thailand, the Maldives, and Vietnam. Through a joint venture with Marriott International, it has developed the 144 room Marriott Vacation Club Time Share in Phuket. MINT is also one of the largest spa operators in the Asia Pacific region with 27 spas in Thailand, China and the Middle East under the Mandara, the Spa and Anantara brands. For more information, visit www.minornet.com
For more information please contact:
Pratana Manomaiphiboon / Prapharat Tangkawattana / Jim Fralick at Tel: (662) 381-5151