Restaurant chain operator Max’s Group Inc. is embarking on a two-year share buyback program worth P350 million, after its stock price plummeted 18.1 percent since its maiden share offering in December 2014.
Max’s Group said in a disclosure to the stock exchange its board authorized the company to exercise discretion in acquiring shares in the open market up to an aggregate value of P350 million.
“This is in line with the corporation’s cash management activities seen to benefit shareholders in the long term,” Max’s Group said.
Based on the stock’s closing price of of P14.54 per share on Thursday, the P350-million shares would represent around 2.2 percent of the corporation’s total outstanding stocks.
The company said the buyback program would cover the period Feb. 04, 2016 to Feb. 03, 2018.
Several listed companies are aggressively buying back their respective shares in the market following the market’s recent decline due to developments overseas, particularly the slowdown in China and the steep drop in world crude prices.
Max’s Group was listed with the Philippine Stock Exchange in December 2014 after raising P3.5 billion from the sale of 197.183 million shares at P17.75 apiece.
Max’s Group includes several homegrown and international brands such as Max’s Restaurant, Max’s Corner Bakery, Krispy Kreme, Jamba Juice, Pancake House, Yellow Cab, Le Coeur De France, Dencio’s, Teriyaki Boy, Sizzling Pepper Steak, Kabisera and Maple.
The restaurant chain finalized five new partnerships with various international partners last year, which would involve the rollout of 15 Yellow Cab stores in Saudi Arabia within 10 years, 10 Yellow Cab and eight Pancake House restaurants in the United Arab Emirates within five years,10 Sizzlin’ Steak outlets in Vietnam within five years and three Max’s Restaurants in San Diego, California over the next five years.
Max’s Group also signed a deal with ZhongFa Group in January this year to build at least 15 Yellow Cab Pizza stores in China within the next five years.
The company said its strategy to forge partnerships with international groups was in line with the target to have at least 200 stores overseas by 2020.
Max’s Group plans to open 70 to 80 stores in 2016, including 60 to 65 stores in the Philippines and 15 to 20 stores in other countries.