Haimarrow Food Service Co., the Kosdaq-listed operator of South Korea’s fast food chain Mom’s Touch, will be sold to local private equity fund KLN Partners at about 197.3 billion won ($170.4 million).
The company announced in a disclosure Tuesday that it signed a contract to sell a 57.85 percent stake or 54,780,000 shares owned by its largest shareholder and Chairman Chung Hyun-sik plus 1.58 million convertible shares at about 197.3 billion won, 3,500 won apiece, to KLN Partners.
As of 11:40 a.m. on Wednesday, shares of Haimarrow Food Service rose 2.88 percent to 2,855 won.
“We decided to sell the stake on conclusion that a company well-versed in the overseas market would help us achieve our goal to tap deeper into the global market,” an official from Haimarrow said.
Chung, who worked for TS Food and System that used to operate both fast-food restaurants Popeyes and Mom’s Touch, left the firm in 2004 and became the owner of Mom’s Touch after buying it from his previous employer.
Since Chung set up Haimarrow Food Service to manage Mom’s Touch, he has focused on cost-effectiveness strategy by providing high-quality burgers and other food items at prices 20 percent cheaper on average than big-name competitors.
The home-grown food service chain has grown rapidly while others are struggling amid industry-wide slump, with its operating profit reaching 13 billion won and revenue 154.4 billion won from January to June period. It has 1,198 stores across the country as of the end of June.
The company went public on the country’s secondary Kosdaq market in September 2016 after taking over Kosdaq-listed KTB Special Purpose Acquisition Company 3 Co. (KTB SPAC 3).
By Han Woo-ram and Choi Mira
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]