Mint acquires 49-per cent stake in China's Riverside restaurant chain

It invested 249 million yuan (Bt1.2 billion) for the initial holding acquired from a financial investor together with a convertible loan that entitles the company to increase its stake in Riverside by 11-30 percentage points in two years, subject to a performance hurdle.
The deal will be financed by the company’s operating cash flow and credit facilities. The remaining shares of Riverside will continue to be held by the founders. Despite a minority stake, Mint holds the majority of the board seats.
Established in 2005, Riverside has built up strong brand equity and customer loyalty for traditional sizzling fish dishes, combining countryside cooking with well-groomed service and contemporary decoration.
It has expanded rapidly and is expected to have 22 restaurants across Beijing and Shanghai this year. Its revenue is expected to exceed 180 million yuan this year and 240 million yuan next year.
William Heinecke, chairman and chief executive officer of Minor International, said yesterday that China was a country of vast opportunities arising from its rapidly growing middle class, accumulation of wealth and increasing domestic consumption.
Since Mint entered the country in 2005, it has expanded to 19 restaurants under The Pizza Company, Sizzler and Thai Express brands in Beijing, and The Coffee Club in Guangzhou. It manages a luxury hotel, Anantara Sanya Resort & Spa, and seven spas across the country.
Paul Kenny, CEO of Minor Food Group, said Riverside was a unique food concept and the number of players in this space was still limited.
“Not only does this acquisition enhance our diversification and double the number of our restaurants in the world’s most populous nation, it will also bring in immediate earnings, which will be a turning point for our entire food business in China operationally and financially in 2013.”
Minor International is a global company focused on three core businesses – restaurants, hotels and lifestyle-brands distribution.