By Ashley Erika O. Jose, Reporter
METRO PACIFIC Investments Corp. (MPIC) has acquired a 15% stake in Eight8Ate Holdings, Inc., the operator of Conti’s Bakeshop and Restaurant and Wendy’s Philippines, in a move analysts said would support MPIC’s strategy to vertically integrate its agribusiness.
“[It’s] not a very big amount,” MPIC Chairman, President and Chief Executive Officer Manuel V. Pangilinan told reporters on Thursday, describing the value of the transaction.
Asked how soon the deal could contribute to MPIC’s revenue, Mr. Pangilinan said the company only took a minority stake in Eight8Ate Holdings.
Established in 2018, Eight8Ate Holdings currently manages and operates brands such as Conti’s, a premium casual dining restaurant, and Wendy’s Philippines.
“We are only a minority. I know that Conti’s is making money already. I think Wendy’s will soon make money,” Mr. Pangilinan said.
“It will help the company be more vertically integrated. This is because they have the farms, then the food processor, manufacturer, then the restaurants. Vertical integration will help boost profitability,” COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message.
For First Metro Investment Corp. Head of Research Cristina S. Ulang, the investment will help expand the holding company’s dairy and other food-based products value-added chain.
MPIC, through its agriculture arm Metro Pacific Agro Ventures, Inc. (MPAV), said it is pursuing a strategy to create a vertically integrated agribusiness portfolio.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
