SET-listed Minor International (MINT) has taken over Chicken Time, a chain restaurant, operating over 40 outlets in Thailand under the popular Bonchon chicken brand.
The company on Monday reported to the Stock Exchange of Thailand that it used Minor Food Group (MFG), a subsidiary in which it owns 99.73%, to acquire a 100% stake in Chicken Time for 2 billion baht.
The deal will allow Minor Food Group to operate existing Bonchon stores in Thailand. While the investment does not include the franchise rights to open new stores, MINT is in the process of discussing a potential partnership with the master franchise rights holder to allow MINT to further expand Bonchon outlets across the country, according to the statement.
Bonchon, which was established in 2002 in South Korea, has become a strong global brand as Korean-style fried chicken gained popularity.
The brand has a specialised Korean-style fried chicken glazed with signature sauces, creating customer loyalty for a distinctive crispy chicken and other Asian fusion dishes.
Bonchon has rapidly expanded worldwide, spanning across nine countries comprising the US, Bahrain, Kuwait, the Philippines, Singapore, Cambodia, Vietnam, Myanmar and Thailand.
“The already lucrative portfolio of Bonchon in Thailand will bring us immediate revenue and earnings to further sharpen our growth trajectory. We believe Thailand continues to offer promising long-term outlook based on its growing middle class and increasing personal income,” said William Heinecke, founder and chairman of MINT.
“The unique customer proposition of the Bonchon brand combined with our robust four decades of experience and established operating platforms in Thailand will no doubt equip us to further maximise value in this new investment for our shareholders.”
Paul Kenny, chief executive of Minor Food, said the group took its time to find the right brand to add to its portfolio.
“Chicken is undoubtedly one of the preferred proteins for Thais, and the growth potential the market is enormous,” said Mr Kenny.
“While Bonchon will fit well within our casual dining restaurant portfolio, it also enhances our brand diversification. This strategic move builds on our long history as a restaurant operator.”
MINT share prices closed on Monday on the SET at 36.50 baht, up 50 satang, in trade worth 325 million baht.