For a while now, Navegar has been trying to unload its stake in the company, which operates over 200 restaurants in the Philippines, including crowd favorites such as TGI Friday’s, Italianni’s, and Randy’s Donuts, but has found the offers unsatisfactory.
As recently as last year, the company was being marketed at a valuation of about P8 billion, with no serious takers, the insider said.
The insider now says the fund, which is also backing the likes of Bo’s Coffee and the fast-expanding hard discount group Dali, is willing to wait longer.
It’s also turning its attention to increasing its store network and adding more brands, which already include upscale concepts such as Helm and Morton’s The Steakhouse chain.
“Bistro can wait 1-2 years because this is a pretty large deal,” the insider said.
Although this would extend the holding period beyond the typical private equity timeline, the potential returns could be significantly higher.
“Let’s say the group can double its size in a few years, it can be worth even P15 billion,” the insider said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
