Jubilant Foodworks makes bid to acquire DP Eurasia
DP Eurasia has issued a response to the offer.
India foodservice company Jubilant Foodworks Limited, through its wholly owned subsidiary Jubilant Foodworks Netherlands B.V. is making a bid to acquire DP Eurasia.
Jubilant Foodworks currently holds 48.84% ordinary shares of DP Eurasia. For funding the acquisition, JFN said it would be using a combination of existing term loan facility availed from HSBC and avail a new long-term facility from HSBC backed by the Corporate Guarantee to be issued by the Company in favour of HSBC.
The company is offering a price of up to 85 pence per share from existing shareholders of DP Eurasia.
DP Eurasia is a public company listed with London Stock Exchange PLC, and is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan and Georgia.
The group operates around 684 Domino’s restaurants and operates an asset-light, scalable business through franchised stores contributing to 88% of the overall stores. It is the largest pizza delivery company in Turkey.
In addition to the pizza business, the group also has its own coffee brand, COFFY, which trades from 67 stores at period-end, 78% of which are franchised.
DP Eurasia recently announced that its like-for-like system sales grew by 29.4% for the ten-month trading period ending 31 October, a huge increase from the loss of 7.8% in the previous year.
In a statement, DP Eurasia called the offer as ‘both unsolicited and unexpected'.
“For the time being, shareholders are advised to take no action. The Board is in the process of considering the Offer with its advisers and a further statement will be made in due course,” DP Eurasia said.
