In business, the acquisition of a
company by another is always a complicated process, and costs quite a lot too.
Such expenditures often come with accruing debts to afford the acquiring of the
firm that will become the newest part of the acquirer’s organization. Jollibee
Foods, the biggest fast-food chain in the Philippines, certainly racked up some
debts when it bought up American coffeehouse chain The Coffee Bean & Tea
Leaf. To begin paying up those debts, JFC made an offering of some of its fixed
income security bonds though overseas investor meetings last week. Now the
results are in.
ABS-CBN News has it that the bond issue of fixed income securities
that Jollibee Foods Corporation began offering since last week has begun to
bear fruit. On a finance report dated this Friday, January 17, JFC noted that
their offering of bonds has raised about $600 million (or P30.5 billion) in
funds so far. It was a generous return for the first bond issue Jollibee has
made on the stock market in over 25 years since 1993. After all, the initial
offer was only at $400 million, but “strong demand” according to JFC drove the
valuation up by so much.
The first priority use for the
over 30-billion Peso capital raised by JFC offering its fixed income securities
will again be the re-financing of the purchase loans that the Filipino fast-food
giant incurred in order to cover the short-term debts from acquiring the Coffee
Bean & Tea Leaf, the negotiations for which were concluded only in
September of last year. Jollibee notes further in its latest report that once
the company has balanced its sheets and paid its loans to buy up CBTL, they can
continue funding their overseas expansion. The target goal no less is to become
one of the top five restaurant companies in the world someday soon.
0 comments:
Post a Comment