Burger King India Ltd to acquire controlling stake in PT Sari Burger Indonesia

The Board of Directors of Burger King India Limited ('Company'), at its meeting held on December 15, 2021, considered and approved the acquisition of controlling stake in PT Sari Burger Indonesia ("BK Indonesia")

The board approved acquisition of 83.24% stake from existing shareholders of BK Indonesia at an equity value arrived at by adjusting the enterprise value of IDR 2,601 billion equivalent to USD 183 million (on a cash free and debt free basis for 100% of the shares of BK Indonesia), for cash, debt and debt like adjustments, normalized working capital, any profit linked plans or profit sharing arrangements with employees and partners and non-operating liabilities as agreed in the sale and purchase agreement to be executed by and amongst Company, QSR Indoburger Pte. Ltd. ("QSR"), PT Mitra Adiperkasa TBK ("MAP"), F&B Asia Ventures (Singapore) Pte. Ltd. and BK Indonesia ("SPA"), payable in one or more tranches, and on such terms and conditions as mentioned in the SPA.

Post the completion of acquisition of shares as above, the Company shall make fresh capital infusion in BK Indonesia for an amount aggregating to IDR equivalent of USD 40 million by way of subscription to fresh shares issued by BK Indonesia, towards supporting any of its future business requirements, business expansion plans and acquisition of any other business / asset / brand.

In addition, there shall be a further capital infusion by the Company in BK Indonesia by way of subscription to fresh shares issued by BK Indonesia, towards settlement of any debt and debt like adjustments, for such amount to be determined on closing in accordance with the terms of the SPA and on such terms and conditions as agreed in the SSHA.

Burger King India Limited ('Company') has entered into a sale and purchase agreement with QSR Indoburger Pte. Ltd. ("QSR"), PT Mitra Adiperkasa TBK ("MAP"), F&B Asia Ventures (Singapore) Pte. Ltd. and BK Indonesia ("SPA") for acquisition of 83.24% stake in BK Indonesia from its existing shareholders viz. QSR and MAP.

QSR holds 66.48% of the issued share capital of BK Indonesia and is a related party of the Company within the meaning of Section 2(76) of the Companies Act, 2013 and Regulation 2(1)(zb) of the SEBI Listing Regulations. It is a wholly owned subsidiary of the ultimate holding company of the Company i.e. F&B Asia Ventures (Singapore) Pte. Ltd. ('F&B Asia'). F&B Asia is a member of the 'promoter and promoter group' of the Company.

BK Indonesia manages and operates the "Burger King" brand in Indonesia. The Company believes that BK Indonesia is a good fit given the Company's experience in managing and operating the "Burger King" brand in India. The Company realizes the high growth potential in the Indonesian market and believes that the Company can be the right partner to drive the "Burger King" brand in Indonesia through its next phase of growth.

Shares of Burger King India Limited was last trading in BSE at Rs. 153.30 as compared to the previous close of Rs. 155.45. The total number of shares traded during the day was 129940 in over 2368 trades.

The stock hit an intraday high of Rs. 159.50 and intraday low of 152.75. The net turnover during the day was Rs. 20006496.00.

Source : Equity Bulls

Keywords

BurgerKingIndia INE07T201019 Restaurants Acquisition BKIndonesia PTSariBurgerIndonesia