Haimarrow Food Service, a local hamburger franchise operator, announced on Nov. 5 that is has decided to sell 57.85 percent stake held by its Chairman Jung Hyun-sik.
The PEF will also acquire 1,283,949 shares of convertible bonds after conducting due diligence over the next few weeks, according to the memorandum of understanding that the companies signed. The total acquisition amount will be worth 197.3 billion won ($170,31 million).
After selling the stake, Jung will be left with a 5 percent stake in the company.
“For Mom’s Touch to become a global franchise brand, it needs some evolution and change,” Jung said in a statement. “I decided to sell this company and let professionals manage the company because I believe that it will be much helpful for the company’s growth than passing it down to my children.”.
Jung established Haimarrow Food in 2004 and it is known for its popular local hamburger franchise chain Mom’s Touch, which currently has 1,226 stores.
The company also expanded its overseas business including in the US, Malaysia and the Philippines. The Korean company, however, shut down its business in China two years after entering in 2004, mainly due to lack of preparation and understanding of the market.
By Song Seung-hyun (email@example.com)