PHI Group buys majority interest in Saigon Pho Palace

PHI Group will acquire 51 per cent of Saigon Pho

On October 17, PHI Group, Inc., a diversified holding company from the US focused on mergers and acquisitions and investments in select industries, agriculture, and real estate, announced that the company signed an agreement to acquire a 51 per cent equity interest in Saigon Pho Palace JSC (SGP) and plans to pay for the transaction with Preferred Stock from PHI Group, Inc. or a promissory note that may be convertible into shares of a subsidiary of the company.

The amount of Preferred Stocks of PHI Group or the value of the convertible notes to be issued for the exchange of the equity interest in SGP will be based on the results of a valuation of SGP's business by a professional, independent appraisal firm.

SGP will also engage a PCAOB-registered accounting firm to audit its financial statements and expects to provide information about its operating results, according to Generally Accepted Accounting Principles (GAAP) within sixty days.

PHI will form a wholly-owned subsidiary as the special purpose vehicle to hold the majority interest in SGP and, subject to meeting all necessary compliance requirements, file a registration statement with the US Securities and Exchange Commission to take this subsidiary public in the US Stock Market in the future to create a platform for SGP's growth and expansion.

SGP Palace operates in the field of hospitality, construction, and real estate investment and is currently developing a number of prominent projects in Ho Chi Minh City and other locations in Vietnam.

It has been operating a chain of restaurants that cater to wedding banquets and convention events and plans to build 35 more restaurants by 2025. It is estimated that this market segment in Vietnam generates approximately $8 billion in revenue a year. In addition, SGP also has plans to build a new chain of 50 SGP Bulkoki restaurants by 2025 and 200 SGP X-N Coffee shops by 2027.

Quy Minh Le, chairman and general director of SGP Palace, stated, "We believe that with proper financial resources we would be able to capture 20-30 per cent of this $8 billion market in the next five to seven years and create very significant value for our shareholders."