(Bloomberg) -- Figaro Coffee Group Inc. jumped to a record as Philippine’s largest instant noodle maker Monde Nissin Corp. acquired a 15% stake in the company, giving the local coffee chain and restaurant operator more funds to expand its store network.
Shares of Figaro advanced 5.6% Thursday, trimming earlier gains of as much as 6.7%, while volume surged about 24 times of its three-month daily average. Monde, on the other hand, declined 2.5%.
Monde will buy 15% of the company for 820.3 million pesos ($15 million), boosting Figaro’s coffers which include 698 million pesos raised through an initial public offering a year ago. Analysts said this would enable Figaro to ride the growing momentum in the economy’s reopening and double its company-owned store count by 2024.
“The transaction makes sense for both,” says AP Securities analyst Francis Subido. “With Monde on board, Figaro gets procurement and financial capabilities to become a stronger player.”