Update on Minor International Pcl

RNS Number : 3837U

Symphony International Holdings Ltd

28 December 2012

 



Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful.

28 December 2012

Symphony International Holdings Limited ("SIHL" or the "Company")

Update on Minor International Pcl

The Company is pleased to announce that one of its portfolio companies, Minor International Pcl ("MINT") acquired a popular restaurant chain in China.

MINT made an announcement on 24 December 2012, which is reproduced below.

MINOR INTERNATIONAL PCL
PRESS RELEASE - 24 December 2012	FOR IMMEDIATE RELEASE

MINT ACQUIRES POPULAR RESTAURANT CHAIN IN CHINA

Minor International ("MINT") announced that it has made an investment in Beijing Riverside & Courtyard ("Riverside"), a distinctive chain of casual-concept restaurants in China, specializing in Sichuan barbecue fish. Established in 2005, Riverside has built up strong brand equity and customer loyalty for traditional sizzling fish dishes, combining countryside cooking with well-groomed service and contemporary decoration. With its popularity, it has expanded rapidly and is expected to have 22 restaurants across Beijing and Shanghai by the end of 2012. Riverside's revenue is expected to reach over RMB 180 million (approximately Bt 900 million) in 2012 and over RMB 240 million (Bt 1.2 billion) in 2013.

The total investment size is RMB 249 million (approximately Bt 1.2 billion) for the initial 49% stake acquired from a financial investor, together with a convertible loan that entitles MINT to another 11-30% stake in Riverside in two years, subject to a performance hurdle. The investment will be funded by a combination of MINT's operating cash flows and financing facilities. The remaining shares of Riverside will continue to be held by the original founders. Despite a 49% stake, MINT holds a majority of the Board seats.

William E. Heinecke, Chairman and CEO of Minor International commented, "China is a country of vast opportunities that arise from its rapidly growing middle class, accumulation of wealth, and increasing domestic consumption. Since our entry into the country in 2005, MINT has expanded to 19 restaurants under The Pizza Company, Sizzler and Thai Express brands in Beijing, and The Coffee Club in Guangzhou, manages a luxury hotel, Anantara Sanya Resort & Spa, and 7 spas across the country. Our experience in China has afforded us an understanding of local consumer preferences and how best to navigate the country's dynamic business environment. The lessons we learned have enabled us to improve performance year over year. Most recently, our first hotel launch in China has been well-received by domestic and international tourists. I am confident that Riverside will add a new dimension to our market coverage in China and greatly contribute to our success there."

Paul Kenny, CEO of Minor Food Group, added, "Riverside is a unique food concept and the number of players in this space is still limited. Not only does this acquisition enhance our diversification and double the number of our restaurants in the world's most populous nation, it will also bring in immediate earnings, which will be a turning point for our entire food business in China operationally and financially in 2013. The brand offers potential to significantly expand the number of outlets post-acquisition. It is another milestone that reinforces our commitment to strengthen our business in China. Riverside's founders will remain the Chief Executive Officer and Chief Operating Officer, and they will gain an advantage of expanding into new frontiers by becoming a part of MINT's international food chain, thus leveraging on our depth of management expertise and resources. The synergistic value is priceless."

About Minor International:Minor International (MINT) is a global company focused on three primary businesses including restaurants, hotels and lifestyle brands distribution. MINT is one of Asia's largest restaurant companies with over 1,300 outlets operating system wide in 18 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, the Coffee Club and Ribs and Rumps brands. MINT is also a hotel owner, operator and investor with a portfolio of 41 hotels and 40 serviced suites under the Anantara, Avani, Oaks, Marriott, Four Seasons, St. Regis, Elewana and Minor International brands in Thailand, Australia, New Zealand, the Maldives, Vietnam, Tanzania, Kenya, the Middle East, Sri Lanka, China, Malaysia and Indonesia. MINT is one of Thailand's largest distributors of lifestyle brands focusing primarily on fashion, cosmetics and contract manufacturing. Its brands include Gap, Esprit, Bossini, Charles & Keith, Pedro, Red Earth, Tumi, Zwilling J.A. Henckels, and ETL Learning. For more information, please visit www.minorinternational.com.

For further information:

Chaiyapat Paitoon / Jutatip Adulbhan              [phone]

Minor International

Neil Doyle/ Tom Willetts 
                                 [phone]/ 7175

FTI Consulting

About Symphony International Holdings

Symphony International Holdings (LSE:SIHL) is a London listed strategic investment company that invests in consumer businesses and develops luxury branded real estate, hospitality and healthcare ventures which are principally in Asia. It offers a way for investors to gain exposure to the rising disposable incomes and wealth in fast growing economies. Symphony's objective is to provide superior capital growth by investing in high quality companies and forming long-term business partnerships with talented entrepreneurs. Symphony is managed by Symphony Investment Managers which has a team of investment professionals with a broad range of expertise - many of them have been working in Asia for more than 25 years. For more information please visit our website at www.symphonyasia.com

No representation or warranty is made by the Company as to the accuracy or completeness of the information contained in this announcement and no liability will be accepted for any loss arising from its use.

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Company in any jurisdiction. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

This announcement is not an offer of securities for sale into the United States. The Company's securities have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offer of securities in the United States.

End of Announcement

 

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