Hong Kong investment company Pacific Alliance Group (PAG) has reportedly entered the bidding for a 100 per cent share of South Korean fast-food business Mom’s Touch & Co.
Mom’s Touch’s owner, private equity group KL& Partners, anticipated selling the burger chain for roughly US$801.9 million last July when it recruited Bank of America Securities as a lead manager and prepared for the bidding process, according to investment banking sources.
The transaction is expected to finalise at a reduced price since the purchasing frenzy has subsided in recent months.
Goldman Sachs, Yum!, Brands, and CJ Group, one of South Korea’s largest family-owned business enterprises, were also reported to have expressed interest in the acquisition but did not participate in the bidding process.
Mom’s Touch, founded in 1998, has the most store (1363) among Korean fast-food chains. It has operations outside South Korea, in markets including Vietnam.
PAG purchased Gyro Holdings, the operator of a portfolio of restaurant and cafe brands in Japan, last year as part of its strategy to expand in the Asian market.
