April 26, 2024

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[THE INVESTOR] Standard Chartered Bank’s private equity arms -- Standard Chartered Private Equity and Finventure -- will sell their stake in Mad for Garlic, an Italian restaurant chain specializing in garlic-infused dishes, according to industry sources on July 19.

SC Bank currently has 71.42 percent stake in the restaurant chain -- 34.61 percent stake of SCPE and 36.81 percent of Finventure.

The PE arms have reportedly picked Samsung Securities as deal manger and are currently gathering information about likely bidders. Some PEFs and strategic investors, which have restaurant chain franchises in their investment portfolio, reportedly showed some interest in acquiring the restaurant chain.

Industry watchers project that SC Bank’s stake in the restaurant will be priced at around 60 billion won (US$53.01 million). It acquired the stake in 2014 from MFG Korea, a spun-off Mad for Garlic operating arm of Korea’s western-style restaurant chain operator Sun At Food which currently owns the remaining 38.58 percent stake.

Sun At Food is currently in charge of operating 40 outlets in Korea. Mad for Garlic’s sales increased from 55.7 billion won in 2014 to 79.65 billion won in 2017, while posting 3.35 billion won in operating profit.

By Song Seung-hyun (ssh@heraldcorp.com)