Jubilant Foodworks to acquire additional 51.16% stake in DP Eurasia

Jubilant Foodworks Ltd has announced its intention to acquire an ditional 51.16 per cent stake in DP Eurasia NV, exclusive master franchisee of Domino's Pizza brand in Turkey, Azerbaijan, and Georgia. acquisition, to be carried out through its subsidiary Jubilant Foodworks Nerlands B.V, is valued at up to €73.36 million (approximately Rs 670 crore).

Jubilant Foodworks currently holds 48.84 per cent of DP Eurasia's ordinary shares through its wholly-owned arm. proposed acquisition involves purchasing entire issued and outstanding ordinary share capital of DP Eurasia not alrey held by Jubilant Foodworks at a price of up to 85 pence per share from existing shareholders. aggregate purchase consideration will be in form of an all-cash payment.

DP Eurasia, largest pizza delivery company in Turkey, operates 694 stores across Turkey, Azerbaijan, and Georgia (678, 10, and 6, respectively, as of October 31, 2023), offering pizza delivery and takeaway/eat-in facilities. majority of its stores operate under a franchise model, contributing to an asset-light and scalable business.

To fund acquisition, Jubilant Foodworks Nerlands B.V will utilise a combination of existing term-loan facility from HSBC, supported by a corporate guarantee from Jubilant Foodworks Ltd, and a new long-term facility from HSBC, backed by a corporate guarantee to be issued by Jubilant Foodworks Ltd. ditionally, Jubilant Foodworks Ltd will guarantee repayment obligations of Jubilant Foodworks Nerlands B.V towards HSBC, amounting to €60 million, in dition to existing guarantee of €45.89 million.

This acquisition reflects Jubilant Foodworks' strategic move to strengn its presence in pizza market in specified regions and aligns with its growth objectives.

(With PTI inputs)