News Update:
Weather:We are experiencing strong winds and a bit of a rainfall as of 3:45 pm today here's the news about the Typhoon Juan (Megi).
Business news follows as Jollibee acquires Mang Inasal for P3 B - from Phillipine Star. I am missing Jollibee "Jabi" have been in the industry for quite sometime.
Jollibee proves to be still the number one fast growing quick service restaurant chain in the Philippines having involved also in franchises based in China, Taiwan and Korea.
It operates the a network of food service restaurants which includes Jollibee (703), Chowking (404), GReenwich (218), Red Ribbon (215), Delifrance (23) and Manong Pepe's (15), along with Yonghe King ang Hong Zhung Yuan in China. The quick service restaurant group adds Mang Inasal to its growing plate. "JFC will build shareholder value by the growing sales of Mang Inasal - Philippine Star."
News from Manila Bulletin and Philippine Star
Typhoon Juan's Movement Almost Stationary — PAGASA
Manila BulletinOctober 19, 2010, 2:56pm
MANILA, Philippines (PNA) — The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) on Tuesday bared that typhoon Juan (Megi) as of 12:00 p.m. remains almost stationary at 190 kms. west northwest of Dagupan City (16.8°N, 118.6°E).
Aldczar D. Aurelio, PAGASA weather division junior forecaster, told a press briefing that "Juan" has 175 kph winds near the center and gustiness of up to 210 kph and is expected to move quasi-stationary at a speed of 7 kph for the next 12 hours going west northwest.
Aurelio said this is due to the presence of a high pressure area in the north. It is expected to be at 380 km. west northwest of Dagupan City by Wednesday morning and by Thursday morning it would be outside the Philippine Area of Responsibility (PAR) at 560 km. west northwest of Dagupan City.
Roberto S. Sawi, OIC of the Weather Division, explained that although the typhoon moves almost stationary, there is no possibility that it would turn around, although it would go down proceeding towards Vietnam carrying its gained strength.
Sawi further clarified that the installing of this weather disturbance is controlled by another weather system like the high pressure area.
Meanwhile, rains will continue to pour throughout Luzon especially in the western parts of Northern and Central Luzon.
Signal No. 2 remains hoisted over Ilocos Norte, Ilocos Sur, La Union, Pangasinan and Zambales, while signal No. 1 is hoisted over Apayao, Abra, Kalinga, Mt. Province, Ifugao, Benguet, Nueva Vizacaya, Nueva Ecija, Pampanga, Bulacan, Bataan and Cavite, including Lubang Island and Metro Manila.
As regards the dams being monitored by PAGASA, Hydro-Meteorology Division hydrologist Socrates F. Paat said only two, the Magat and Binga Dams, gained rainwater as both increased their water level by five meters, although still below the critical level. Both dams released water minimally.
Jollibee acquires Mang Inasal for P3 billion
By Zinnia B. Dela Peña (The Philippine Star) Updated October 19, 2010 12:00 AM
MANILA, Philippines - Jollibee Foods Corp. (JFC), the country’s largest fastfood chain, has taken over control of Mang Inasal, a highly successful Visayas-based reataurant chain specializing in grilled chicken, in a deal worth P3 billion.
In its disclosure to the Philippine Stock Exchange yesterday, JFC said it has submitted an unsolicited offer to acquire 70 percent of Mang Inasal Philippines Inc. (MIPI), which was unconditionally and irrevocably accepted by its parent company Injap Investments Inc.
The move is the latest in JFC’s continued growth trajectory through expansion and acquisitions, the most recent of which involved franchises based in China, Taiwan and South Korea.
Mang Inasal, a homegrown business, started as a single proprietorship in December 2003 by its founder Edgar “Injap” Sia II in Iloilo City, the first barbeque fastfood chain anchored by its flagship chicken inasal product.
MIPI, which has grown its branches to 303 stores nationwide, is in a positive net cash position, racking up total revenues of P2.6 billion and systemwide sales of P3.8 billion
JFC said it expects to finalize the deal within 30 days, subject to the completion of due diligence by Pricewaterhouse-Coopers-Isla Lipana & Co. and law firm Romulo Mabanta Buenaventura Sayoc and De los Angeles.
Sia will remain as a significant minority shareholder in MIPI with a remaining 30-percent stake.
As part of the transaction, JFC has made an initial P200-million payment to MIPI. About 90 percent of the purchase price (less the initial payment) will be paid on closing, with the remaining 10 percent settled over a period of three years from closing.
JFC said the purchase of Mang Inasal would add approximately five percent to its total worldwide systemwide annual sales, five percent to revenues and seven percent to net operating income.
Mang Inasal’s chain will also increase JFC’s store network in the Philippines by 19 percent and on a worldwide basis by 16 percent. Of the total Mang Inasal branches, 24 are company-owned while 279 are franchised.
The Jollibee Group already operates the most extensive fastfood network in the Philippines with a total of 1,578 stores: Jollibee (703), Chowking (404), Greenwich (218), Red Ribbon (215), Delifrance (23) and Manong Pepe’s (15).
On a global scale, JFC also has Jollibee, Red Ribbon and Chowking stores, along with Yonghe King and Hong Zhunag Yuan in the People’s Republic of China.
The group, which is building on strong growth by adding Mang Inasal to its growing plate, said it has sufficient financial resources to pay for the acquisition in cash generated from its operations.
“JFC will build shareholder value by growing the sales of Mang Inasal’s existing stores through the application of JFC’s knowledge of consumers and its available recipes and products, continued expansion of Mang Inasal’s store network, cost improvement on its raw materials and greater operational efficiency by applying JFC’s technology and scale,” the fastfood giant said.
JFC said it intends to keep MIPI’s current personnel, subject to their meeting the JFC Group’s organizational standards.
Industry analysts said the transaction was a wise move for Jollibee as it has successfully avoided growing cut-throat competition with Mang Inasal, the fastest-growing fastfood chain in the country which was earlier touted as the “new Jollibee” when it made plans to offer its shares to the public early this year.
“For the past few years, Mang Inasal has been giving Jollibee a run for its money. This move is definitely a wise one for a company always on the lookout for opportunities to grow further. As the saying goes, if you can’t beat them, join them,” one analyst said.
JFC is eyeing a double-digit growth in sales and profit for the year with the opening of a total 200 new stores – 100 each both locally and overseas - to bring its total store network to 2,000 by yearend.
In the first half this year, the group posted flat earnings at P743 million compared with P746 million the previous level, largely due to foreign exchange losses.
Systemwide sales, which measures all sales to consumers both from company-owned and franchised stores, rose 10.6 percent to P17.57 billion, driven by a 5.7 percent hike in store network and a five percent rise in sales of stores that were at least one year old.
In its disclosure to the Philippine Stock Exchange yesterday, JFC said it has submitted an unsolicited offer to acquire 70 percent of Mang Inasal Philippines Inc. (MIPI), which was unconditionally and irrevocably accepted by its parent company Injap Investments Inc.
The move is the latest in JFC’s continued growth trajectory through expansion and acquisitions, the most recent of which involved franchises based in China, Taiwan and South Korea.
Mang Inasal, a homegrown business, started as a single proprietorship in December 2003 by its founder Edgar “Injap” Sia II in Iloilo City, the first barbeque fastfood chain anchored by its flagship chicken inasal product.
MIPI, which has grown its branches to 303 stores nationwide, is in a positive net cash position, racking up total revenues of P2.6 billion and systemwide sales of P3.8 billion
JFC said it expects to finalize the deal within 30 days, subject to the completion of due diligence by Pricewaterhouse-Coopers-Isla Lipana & Co. and law firm Romulo Mabanta Buenaventura Sayoc and De los Angeles.
Sia will remain as a significant minority shareholder in MIPI with a remaining 30-percent stake.
As part of the transaction, JFC has made an initial P200-million payment to MIPI. About 90 percent of the purchase price (less the initial payment) will be paid on closing, with the remaining 10 percent settled over a period of three years from closing.
JFC said the purchase of Mang Inasal would add approximately five percent to its total worldwide systemwide annual sales, five percent to revenues and seven percent to net operating income.
Mang Inasal’s chain will also increase JFC’s store network in the Philippines by 19 percent and on a worldwide basis by 16 percent. Of the total Mang Inasal branches, 24 are company-owned while 279 are franchised.
The Jollibee Group already operates the most extensive fastfood network in the Philippines with a total of 1,578 stores: Jollibee (703), Chowking (404), Greenwich (218), Red Ribbon (215), Delifrance (23) and Manong Pepe’s (15).
On a global scale, JFC also has Jollibee, Red Ribbon and Chowking stores, along with Yonghe King and Hong Zhunag Yuan in the People’s Republic of China.
“JFC will build shareholder value by growing the sales of Mang Inasal’s existing stores through the application of JFC’s knowledge of consumers and its available recipes and products, continued expansion of Mang Inasal’s store network, cost improvement on its raw materials and greater operational efficiency by applying JFC’s technology and scale,” the fastfood giant said.
JFC said it intends to keep MIPI’s current personnel, subject to their meeting the JFC Group’s organizational standards.
Industry analysts said the transaction was a wise move for Jollibee as it has successfully avoided growing cut-throat competition with Mang Inasal, the fastest-growing fastfood chain in the country which was earlier touted as the “new Jollibee” when it made plans to offer its shares to the public early this year.
“For the past few years, Mang Inasal has been giving Jollibee a run for its money. This move is definitely a wise one for a company always on the lookout for opportunities to grow further. As the saying goes, if you can’t beat them, join them,” one analyst said.
JFC is eyeing a double-digit growth in sales and profit for the year with the opening of a total 200 new stores – 100 each both locally and overseas - to bring its total store network to 2,000 by yearend.
In the first half this year, the group posted flat earnings at P743 million compared with P746 million the previous level, largely due to foreign exchange losses.
Systemwide sales, which measures all sales to consumers both from company-owned and franchised stores, rose 10.6 percent to P17.57 billion, driven by a 5.7 percent hike in store network and a five percent rise in sales of stores that were at least one year old.
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