Fruitas Holdings Inc., through wholly owned subsidiary Soykingdom Inc., is acquiring 100 percent of the 72-year old “legacy brand” Ling Nam’s restaurant business.
In a disclosure to the Philippine Stock Exchange, Fruitas said the Board of Directors of Soykingdom has approved the acquisition of all the outstanding common shares of LN Banaue Inc. and identified assets relating to the Ling Nam restaurant business in the Philippines from Ling Nam Wanton Parlor and Noodle Factory and Peter K. Fung.
LN Banaue Inc. is known for its "legacy brand", Ling Nam which was built since 1950's. The restaurant is known for its delicious, quality and authentic Cantonese dishes such as noodles, congee, and other dimsum products.
It is also known for its signature Beef Wanton Noodles and other hot and tasty meals served freshly cooked in its restaurants in Banawe, Quezon City, and T. Alonzo, Manila.
The parties entered into a Memorandum of Agreement, subject to completion conditions including full inventory of assets to be acquired; subject to execution of Deeds of Assignment and Deeds of Sale, to be signed on completion expected within July 2022.
Fruitas said 60 percent of the acquisition cost will be paid by completion date, while the balance will be paid in installments until March 2023.
However, it did not disclose the purchase price pointing out that, “The purchase price is below 10 percent of the FRUIT's assets and book value as of March 31, 2022. The transaction is still subject to execution of definitive agreements and closing is expected in July 2022.”
“As we always do, we acquire companies and brands that arescaleable. Our plan is not yet fixed but I can see a Ling Nam in every major city of the country; at least 100 stores in the medium to long term,” said Fruitas President Lester Yu.