SET-listed Minor International Plc (MINT) has announced plans to acquire 100% of Bonchon International Inc and its Korean fried chicken restaurant business.
The acquisition will be carried out by MFG International Holding (Singapore) Pte Ltd, a subsidiary of Minor International, the company said in a filing to the Stock Exchange of Thailand on Tuesday.
The Thai hotel and food services group will acquire the 55% stake held in Bonchon by VIG Partners, a Korean private equity group, and 45% held by Seo Jin-deok, who founded the restaurant chain in 2002.
The transaction is valued at US$50 million (1.65 billion baht) with the final price subject to adjustment based on the value of underlying assets at the closing date, expected to be later this month.
Minor International said the acquisition would secure ownership of Bonchon’s intellectual property rights globally, excluding the Americas.
“This move is expected to enhance MINT’s earnings through increased royalty and franchise fee income,” it added.
The deal will be funded through borrowing from financial institutions, the company said.
The first Bonchon Chicken branch in Thailand opened in 2011. The business grew rapidly, in line with Thai consumers’ growing appetite for Korean food, and today there are 110 Bonchon outlets under Minor Food Group in Thailand and Australia.
