MANILA: Figaro Coffee Group Inc jumped as the 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 rose as much as 4.5% yesterday to the highest in nearly a year while volume surged about 20 times of its three-month daily average. Monde Nissin, on the other hand, declined as much as 2.2%.

Monde Nissin will buy 15% of the company for 820.3 million pesos (US$15mil or RM 63.6mil), 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,” said AP Securities analyst Francis Subido.

“With Monde on board, Figaro gets procurement and financial capabilities to become a stronger player. On the other side, Figaro is a potential avenue to sell Monde’s alternative products.”

Priced cheaper than its bigger rivals Starbucks Corp and Jollibee Foods Corp, Figaro’s coffee joints, pizza shops and Chinese restaurants are gaining a following among middle-income households.

 - Bloomberg