Analysts see long-term benefits for Minor International Pcl. (SET: MINT) after acquiring 100% of the intellectual properties of Sizzler for THB546 million, maintaining a “Outperform” rating on MINT shares with a THB43.00 price target.
On Tuesday, Minor International Public Company Limited (SET: MINT) announced that its wholly owned subsidiary, MFG International Holding (Singapore) Pte. Ltd., had entered into a share sale agreement to purchase 100% of the shares of Singco Trading Pte. Ltd., the holding company for the intellectual property of the restaurant brand Sizzler outside the United States, Guatemala, and Puerto Rico, for SGD 21 million (approximately THB 546 million).
This strategic move marks a significant milestone in MINT’s ambitious growth plans worldwide and reinforces its position as an industry frontrunner.
According to KGI Securities, with this investment, MINT will have full ownership of the Sizzler trademark throughout the world excluding the United States, Guatemala, and Puerto Rico. With a projected repayment period of 5 to 6 years, the brokerage firm has a neutral outlook on the transaction in the short and medium term. But in the long run, MINT will benefit from the further expansion of Sizzler branches because it will no longer be required to pay franchise fees.
Since the deal will be funded by MINT’s internal cash reserves, KGI anticipates incurring no new loan or interest costs as a result.
Currently, MINT has strong footing in the restaurant business in Thailand, China and Australia while it is also looking for business opportunities in other countries in ASEAN.