Food Emporium International Limited

[solainvest]

Food Emporium to Raise N750 million by Private Placement

Food Emporium International Limited, the operator of Barcelos Restaurant and fast foods outlets has announced its decision to raise N750 million through the primary market segment of the Nigeria capital market via a private placement exercise.
The company is raising the funds through a private placement for subscription of 300 million ordinary shares of 50 kobo each at N2.50 per share. The offer which commences today, Monday, September 22, 2008 is scheduled to close on October 3, 2008.

Speaking during its completion board meeting in Lagos last week, the Managing Director of the company, Mr. Edward Akerele disclosed that the purpose of the offer is to expand its business and achieve its short term growth plans.

He said, “The purpose of the offer is to provide the companies with funds for the expansion of our business, opening of new outlets, working capital financing, acquisition of Information Technology (IT) infrastructure that will be installed in our various outlets debt financing among others.”
He stated that its growth plans have been broken down into different stages and, adding that its decision to raise the targeted amount is based on its immediate needs and demands for growth and expansion.

“We have decided to grow the business gradually, and we do not want to be seen to be too much in a rush to do certain things. It is interesting to note that the business is growing in leaps and bounds and we plan to sustain it. This is why we decided to raise N750 million to meet our immediate growth plans. As we go further, we intend to further expand the business, when we get to that point we will seek the approval of our shareholders to raise more funds if such need arises.”

He lamented the absence of infrastructure facilities in the country, blaming it for the high cost of doing business in the country and the slow pace of economic growth.

He called on government to address the power situation in the country and provide a conducive environment for business to thrive, through the provision of infrastructures.

He disclosed that it enjoys a strategic partnership with a South Africa firm to provide the Portuguese style of cooking that Barcelos is known for worldwide, and it intends to replicate that world class service in Nigeria.
He stated that all its dishes are produced locally in Nigeria with local flavours and that the dishes meet international standards.

[ayemco]

Barcelós opens N750 million Private Placement
Posted Thursday, September 25, 2008


PETER OBIORA

Proshare NI

September 24, 2008 at 18: 31 GMT




Portuguese branded eatery Barcelos has opened its N750 million Private Placement (PP). This was confirmed to Proshare NI in Lagos Nigeria.



To raise the N750 million, Barcelos is offering 300 million Ordinary Shares of 50 Kobo each at N2.50 Kobo per share.



The source affirmed to Proshare NI that the purpose of the offer was to set up new outlets.



Barcelos currently have six outlets, these include, four in Lagos, one in Abuja and Accra Ghana respectively.



“As we speak now Barcelos is setting up another branch in the Opebi area of Lagos, one each in Abeokuta, Ibadan and Warri” the source said.



The source further affirmed to Proshare NI that the Barcelos cuisine is a Portuguese oriented and Food Emporium International, owners of the brand have franchise for the whole of West Africa.



“Therefore, the strategy is to be able to increase the number of outlets they have and serve their customers” the source said.



The source further affirmed that the target market is for the middle class and up scale individuals.



Barcelos is expected to pay a minimum of 40 percent of its Profit after Tax (PAT) as dividend to investors.



“The company has a very aggressive dividend policy, it intends to pay a minimum of 40 percent of the PAT to shareholders as dividend, therefore, Return on Investment (ROI) would be very good” the source affirmed.



The source also confirmed to Proshare NI that Barcelos intends to list its shares on the Floors of the Nigerian Stock Exchange (NSE) in year 2009.



“We are also targeting listing before the end of year 2009” the source said.



The ownership structure of Barcelos cut across Nigerians and South Africans. Nigerians own 80 percent stake in the company while the South African own 20 percent.



The Placement opened Monday September 22, 2008 and it is expected to last for only two weeks. Barcelos have been in the business for over five years and is only interested in maintaining its standards.



Financial Advisers to the Placement include Staco Prime Capital Limited, and Cordros Capital Limited.



However, as at the time of filling in this report, Proshare NI could not get more details as regards

Over to you

[solainvest]

Find attached the Barcelos PP document.

[solainvest]

Log on proshare to get full interview

Excerpts:



The Company Barcelos



The Company was set up for a joint venture between some Nigerians and Emporium Franchise Holdings of South Africa. They operate the Barceló’s chain in South Africa.



However, the foresight of our Chairman and a few individuals some six years ago cumulated in the possibility of opening up a chain of outlets in Nigeria.



We started with one outlet in Ikeja area of Lagos State and today we have six branches which include four in Lagos, one in Abuja and Ghana respectively.



Our franchise in West Africa has propelled us to look at expanding with the funds we are raising further into the region.



Growth has been very limited due to the strategic decision that the company took and this came from the fact that we needed to get it right and let people know our name before we venture out aggressively.



As far as we are concerned in Barcelos, there are only two quick service restaurants in Nigeria; Barcelos and the others. As a matter of fact, the others rank a distant second in terms of quality and ambiance.



If you visit any of our of outlets, there are chances that you would come back some other time. In terms of customers’ loyalty, we would say that we are 90 percent; most people that go to Barcelos come back some other day.



I cannot speak for the other players in the industry, but when you go into some of them, you would discover that the way you are treated, you might not return.



Therefore, we have spent a lot of emphasis on making sure that people come back; because at the end of, it is the customer that we rely on for us to get to were we are projecting.



Barcelos and other players in the industry



The company has been small; the strategic approach we have taken is for it to remain a Private Company for the time being.



We have decided that the expansion would come in phases; it will come in stages; because at this particular point in time, Barcelos is doing a Placement to raise some funds; in order to execute the expansion which is the next stage.



This is a business plan that we are pursuing in stages, this is the first and we are going to a phase expansion with the funds that we are going to receive.



Thereafter, we can go into the next stage of expansion which is when we would go public and list our shares on the Floors of the NSE.



We don’t want to go to the public and raise about N6.0 billion and begin to think on what to use the funds for.



This is the reason we have an expansion plan and the funds we are raising now would take us to that expansion phase.



However, the life cycles of products are into the early and maturity stage, we are going into the second stage now; following that particular expansion programme.



The kind of restaurants that we have are middle to high class type; which like I said earlier has a very nice ambiance. We are targeting at a particular market; which are found in particular choice areas and getting these choice areas are not exactly easy and we have to be sure that the investment we are making would give us the right returns.



Thus, we have been able to identify a few places that we can go to and commit the kind of resources that we are raising and through this, we can get the kind of returns our potential investors are expecting.



Barcelos and N750 million Placement



N750 million will be enough to satisfy the expansion plan that we wish to undertake and also to ensure adequate returns for potential investors as I affirmed earlier.



Barcelos is not opening up the company to everybody at this stage, but it would come at a later date. The promoters are still cautious and it is with this level of cautiousness that has put the company on a firm financial footing and above the rest.



I am not sure that Tantalizers and Big Treat are competitors; of course they are in the Quick Service Restaurant (QSR) business, but within the business, the market can be segregated, we are probably closer to the likes of Nandos and you would want to group Mr Biggs and Tantalizers in the same level in that industry.



But we in Barcelos may want to compare ourselves to the likes of Sweet Sensation and Nandos to a certain extent, we are different, some of them are going for mass; but we are not.



We are operating a niche part in the quick service restaurant market.



Barcelos and its Portuguese brand



Basically all our food is local; but has Portuguese flavours. The owner of the Barcelos brand name in South Africa is a Brazilian but it developed the Portuguese flavours to preparing our Chickens in Barcelos.



And it seems to be a best seller; which is what we are offering to the Nigerian public; but for intent of purpose, all our food are grown locally and purchased here, all we do is just to give the Portuguese flavours to it to give Nigerians a different taste of chicken.



Number of units and Placement price



We are offering 300 million shares at N2.50 Kobo amounting to N750 million. Basically, investors are buying into a company that has so much potential.



FACTS CHECKS: From the Placement Memorandum, Barcelos is offering 3,000,000 Shares of 50 Kobo each at N2.50 Kobo per share.



Like I said earlier, Food Emporium International holds the franchise for the entire West Africa sub-region and we believe that there are opportunities out there.



The company itself has been free of debt; our borrowings as far as we are concerned are not much for a company that has so much potentials and outlets.



Use of Placement proceeds



We would use the funds like I affirmed earlier for expansion purposes, working capital and to put in place an Information Technology (IT) infrastructure.



Apart from the above, we would use the funds to repay very minimal debt about a N100 million; while the other remainder would be used for the above mentioned plans. This is basically the purpose of the Placement.



However, trying to set up outlets cost money in terms of bringing in the equipment, getting the required human capital and others such as power supply, cost of acquiring sites and so on are financial commitments that requires a lot of investment.



Again, it is quite commendable that the original promoters have done very well to have such a number of outlets with their capital; which shows they are capable, the brand Barcelos is also stable and it is now time for investors to come and share the vision that the promoters had. Barcelos is on ground for people to see and make assessment.



With the foregoing, whoever buys into the Placement, is buying into a company that can only get stronger and better in future.



N750 million and the companies expansion and other plans



N750 million would be enough based on the business plan that we have in place, it has been analysed and articulated. Our position now is to try and drive the business plan.



This plan is basically a management and strategic function which I adequately prepared for in terms of knowledge and experience I have in the 25 years of my working career as a Banker.



The challenges before us are that of management and strategic repositioning of the company to ensure that it competes favourably in the industry.



Dividend forecast of Barcelos



The dividend forecast would be based on 40 percent of the Profit after Tax (PAT) of the company, and it is definitely going to be inline with what the market is dictating.



We have taken a position that there is an opportunity cost involved. Everybody is aware of the current trend in the Capital Market. However, the alternative is to go to the Money Market.



But the Money Market is looking at 10 to 12 percent return on investment (ROI). Therefore as a benchmark, we know where to be and we have to be over and above what the opportunity cost is saying.



From our perspective, we are looking at the past track records of all the quick service restaurants that we can compare ourselves.



Again, we are also looking at the activities of companies historically and putting into consideration our projections, it is safe to say that our dividend payout would be over and above that of our competitors.



Barcelos would be looking at paying investors a 17 Kobo dividend in year 2011 Financial Year End (FYE) which is very good in terms of returns on investments.



The company is not still public, but a private company and investors are entitled to have good returns and we know the opportunity cost involved. We assure investors good returns on their investment.



Why raise funds at this particular time



We have confidence on the brand and people know it, thus, our target market is that the type of people we are envisaging should be able to read the Memorandum and analyse same if there are growth potentials and good returns in the invest into Barcelos.



If you have a good product to sell, then you should be able to be confidence enough to come to the market. We know we would sell.



Barcelos and further fresh funds/ listing on the NSE



According to our plans, investors are to begin to reap the fruits of this Placement in the next 12 months; we have our year end in April.

[solainvest]

I have had a quick glance at the memo/pp document and I am sure I can get a better deal on the floor.

I am not buying oh! (personal opinion)

[threecrown]

Originally Posted by solainvest

I have had a quick glance at the memo/pp document and I am sure I can get a better deal on the floor.

I am not buying oh! (personal opinion)

considering all factors, there is no pp or po that is better than the opportunities on the floor right now. So as for me I don't need to go through it.

[hispy99]

CEO Q & A with Food Emporium Int Ltd (Barcelos)
Posted Thursday, September 25, 2008
Barcelos raises fund for expansion

-Assures of good returns




“Barcelos currently boasts 91 outlets in six countries across the globe and we are constantly expanding towards new horizons. The current trend which is moving towards poultry products both for health and affordability reasons combined with the Barcelos concept is undoubtedly a recipe for success. An In-house design and draughting department takes care of the continuous development of new outlets” (Source: Barcelos official website in South Africa)


Proshare NI sought to find out more about Food Emporium International Limited (Barcelos). The company which just opened a Private Placement (PP) and its franchise in the West African sub-region.





In this interview with PETER OBIORA of Proshare NI, Olaolu Akerele, Managing Director (MD) of the company, discusses issues in respect of the companies expansion plans to other parts of West Africa, its proposed dividend payout to investors and listing of its shares on the Floors of the Nigerian Stock Exchange (NSE) come year 2009.



Other issues discussed include the Barcelos plans to issue share certificates within two weeks after allotment return of excess funds to investors among others. Excerpts:



The Company Barcelos



The Company was set up for a joint venture between some Nigerians and Emporium Franchise Holdings of South Africa. They operate the Barceló’s chain in South Africa.



However, the foresight of our Chairman and a few individuals some six years ago cumulated in the possibility of opening up a chain of outlets in Nigeria.



We started with one outlet in Ikeja area of Lagos State and today we have six branches which include four in Lagos, one in Abuja and Ghana respectively.



Our franchise in West Africa has propelled us to look at expanding with the funds we are raising further into the region.



Growth has been very limited due to the strategic decision that the company took and this came from the fact that we needed to get it right and let people know our name before we venture out aggressively.



As far as we are concerned in Barcelos, there are only two quick service restaurants in Nigeria; Barcelos and the others. As a matter of fact, the others rank a distant second in terms of quality and ambiance.



If you visit any of our of outlets, there are chances that you would come back some other time. In terms of customers’ loyalty, we would say that we are 90 percent; most people that go to Barcelos come back some other day.



I cannot speak for the other players in the industry, but when you go into some of them, you would discover that the way you are treated, you might not return.



Therefore, we have spent a lot of emphasis on making sure that people come back; because at the end of, it is the customer that we rely on for us to get to were we are projecting.



Barcelos and other players in the industry



The company has been small; the strategic approach we have taken is for it to remain a Private Company for the time being.



We have decided that the expansion would come in phases; it will come in stages; because at this particular point in time, Barcelos is doing a Placement to raise some funds; in order to execute the expansion which is the next stage.



This is a business plan that we are pursuing in stages, this is the first and we are going to a phase expansion with the funds that we are going to receive.



Thereafter, we can go into the next stage of expansion which is when we would go public and list our shares on the Floors of the NSE.



We don’t want to go to the public and raise about N6.0 billion and begin to think on what to use the funds for.



This is the reason we have an expansion plan and the funds we are raising now would take us to that expansion phase.



However, the life cycles of products are into the early and maturity stage, we are going into the second stage now; following that particular expansion programme.



The kind of restaurants that we have are middle to high class type; which like I said earlier has a very nice ambiance. We are targeting at a particular market; which are found in particular choice areas and getting these choice areas are not exactly easy and we have to be sure that the investment we are making would give us the right returns.



Thus, we have been able to identify a few places that we can go to and commit the kind of resources that we are raising and through this, we can get the kind of returns our potential investors are expecting.



Barcelos and N750 million Placement



N750 million will be enough to satisfy the expansion plan that we wish to undertake and also to ensure adequate returns for potential investors as I affirmed earlier.



Barcelos is not opening up the company to everybody at this stage, but it would come at a later date. The promoters are still cautious and it is with this level of cautiousness that has put the company on a firm financial footing and above the rest.



I am not sure that Tantalizers and Big Treat are competitors; of course they are in the Quick Service Restaurant (QSR) business, but within the business, the market can be segregated, we are probably closer to the likes of Nandos and you would want to group Mr Biggs and Tantalizers in the same level in that industry.



But we in Barcelos may want to compare ourselves to the likes of Sweet Sensation and Nandos to a certain extent, we are different, some of them are going for mass; but we are not.



We are operating a niche part in the quick service restaurant market.



Barcelos and its Portuguese brand



Basically all our food is local; but has Portuguese flavours. The owner of the Barcelos brand name in South Africa is a Brazilian but it developed the Portuguese flavours to preparing our Chickens in Barcelos.



And it seems to be a best seller; which is what we are offering to the Nigerian public; but for intent of purpose, all our food are grown locally and purchased here, all we do is just to give the Portuguese flavours to it to give Nigerians a different taste of chicken.



Number of units and Placement price



We are offering 300 million shares at N2.50 Kobo amounting to N750 million. Basically, investors are buying into a company that has so much potential.



FACTS CHECKS: From the Placement Memorandum, Barcelos is offering 3,000,000 Shares of 50 Kobo each at N2.50 Kobo per share.



Like I said earlier, Food Emporium International holds the franchise for the entire West Africa sub-region and we believe that there are opportunities out there.



The company itself has been free of debt; our borrowings as far as we are concerned are not much for a company that has so much potentials and outlets.



Use of Placement proceeds



We would use the funds like I affirmed earlier for expansion purposes, working capital and to put in place an Information Technology (IT) infrastructure.



Apart from the above, we would use the funds to repay very minimal debt about a N100 million; while the other remainder would be used for the above mentioned plans. This is basically the purpose of the Placement.



However, trying to set up outlets cost money in terms of bringing in the equipment, getting the required human capital and others such as power supply, cost of acquiring sites and so on are financial commitments that requires a lot of investment.



Again, it is quite commendable that the original promoters have done very well to have such a number of outlets with their capital; which shows they are capable, the brand Barcelos is also stable and it is now time for investors to come and share the vision that the promoters had. Barcelos is on ground for people to see and make assessment.



With the foregoing, whoever buys into the Placement, is buying into a company that can only get stronger and better in future.



N750 million and the companies expansion and other plans



N750 million would be enough based on the business plan that we have in place, it has been analysed and articulated. Our position now is to try and drive the business plan.



This plan is basically a management and strategic function which I adequately prepared for in terms of knowledge and experience I have in the 25 years of my working career as a Banker.



The challenges before us are that of management and strategic repositioning of the company to ensure that it competes favourably in the industry.



Dividend forecast of Barcelos



The dividend forecast would be based on 40 percent of the Profit after Tax (PAT) of the company, and it is definitely going to be inline with what the market is dictating.



We have taken a position that there is an opportunity cost involved. Everybody is aware of the current trend in the Capital Market. However, the alternative is to go to the Money Market.



But the Money Market is looking at 10 to 12 percent return on investment (ROI). Therefore as a benchmark, we know where to be and we have to be over and above what the opportunity cost is saying.



From our perspective, we are looking at the past track records of all the quick service restaurants that we can compare ourselves.



Again, we are also looking at the activities of companies historically and putting into consideration our projections, it is safe to say that our dividend payout would be over and above that of our competitors.



Barcelos would be looking at paying investors a 17 Kobo dividend in year 2011 Financial Year End (FYE) which is very good in terms of returns on investments.

Proshare Nigeria - Sign In to Proshare

[BLUEMONEY]

@ ayemco,

This Thread already exist Here: Food Emporium International Limited

[sino]

pls I'm really new in investing private placements. If I may ask, what is the minimum number of the stock you can buy and where can I get it

[BLUEMONEY]

Originally Posted by sino

pls I'm really new in investing private placements. If I may ask, what is the minimum number of the stock you can buy and where can I get it

Every private placement have thier own minimum number of shares you can subscribe as stated on the placement memo by the issuing house. You can subscribe to a private placement through any of the stockbroking firm related to the placement .

if you are interested in this private placement, you can get every information you need Here: http://www.stockmarketnigeria.com/fo...l-limited.html

That is the Original thread for this Placement. Please Moderators, this thread should be locked because it already exists with another name.

[knightofdelta]

Originally Posted by sino

pls I'm really new in investing private placements. If I may ask, what is the minimum number of the stock you can buy and where can I get it

I will advise you not to dabble into private placements at this time. Please, for your own good, hmm? Look towards the secondary market. The risks with PPs are getting too much to be worth it except you are ready to wait for a long time and maybe fight registrars and companies to get your share certificate and then fight them again to get it credited into you CSCS account.

Meanwhile, while you are shopping in the secondary market, don't buy banks that merged for now.

Good luck...

[EIC]

From: Wale.Agbeyangi at cordros.com
Subject: FW: FOOD EMPORIUM INTERNATIONAL LTD (Barcelos)
Date: 7 October 2008 08:28:55 BST
To: webadmin at stockmarketnigeria.com
Subject: Fw: FOOD EMPORIUM INTERNATIONAL LTD (Barcelos)

Dear Investor,

Food Emporium International Limited was incorporated in Nigeria in 2002 as a limited liability company with the aim of replicating the success of Emporium Franchise Holdings International Limited (in South Africa) in Nigeria and West Africa. The company was setup us to carry on the business of operating the Barcelos flamed chicken franchise, including fish fryer, pizza den and griddles flamed burgers, creamy fiesta, mama’s bakery and all matters ancillary and incidental to the business in Nigeria and West Africa.

In order to capture the enormous opportunities available in the Quick Service Restaurant (QSR) Industry in Nigeria and West Africa, the company is offering you an opportunity, by way of Private Placement, to invest in its N750 million equity offering. The proceeds of this offer will be used, among other things, to open twelve (12) new outlets within and outside of Nigeria.

Cordros Capital Limited is one of the Lead Financial Advises to the Private Placement. Due to the recently concluded public holidays and delays from our publishers in getting the Placement Memorandum ready on time, the offer has been extended for two weeks additional weeks to close on October 17, 2008.

The following is a summary of the Placement terms:

Issuer: Food Emporium International Limited

Units being Placed: 300,000,000 Ordinary Shares of 50k @ N2.50/share

Minimum Application: 1,000,000,000 Ordinary Shares & multiples of 500,000 thereafter

Subscription Period: 22nd Sept. – 3rd October, 2008 (extended till October 17, 2008)

We thank you for your attention and look forward to hearing from you soon in this regard.

Please do not hesitate to contact us if you require further information.
Regards,
Wale Agbeyangi
Cordros Capital