Jubilant Foodworks to acquire additional 51.16% stake in DP Eurasia

Jubilant Foodworks Ltd has announced its intention to acquire an additional 51.16 per cent stake in DP Eurasia NV, the exclusive master franchisee of the Domino's Pizza brand in Turkey, Azerbaijan, and Georgia. The acquisition, to be carried out through its subsidiary Jubilant Foodworks Netherlands 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. The proposed acquisition involves purchasing the entire issued and outstanding ordinary share capital of DP Eurasia not already held by Jubilant Foodworks at a price of up to 85 pence per share from existing shareholders. The aggregate purchase consideration will be in the form of an all-cash payment.DP Eurasia, the 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. The majority of its stores operate under a franchise model, contributing to an asset-light and scalable business.To fund the acquisition, Jubilant Foodworks Netherlands B.V will utilise a combination of the 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. Additionally, Jubilant Foodworks Ltd will guarantee the repayment obligations of Jubilant Foodworks Netherlands B.V towards HSBC, amounting to €60 million, in addition to the existing guarantee of €45.89 million.This acquisition reflects Jubilant Foodworks' strategic move to strengthen its presence in the pizza market in the specified regions and aligns with its growth objectives.(With PTI inputs)

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Jubilant Foodworks to acquire additional 51.16% stake in DP Eurasia

DP Eurasia, the largest pizza delivery company in Turkey, operates 694 stores across Turkey, Azerbaijan, and Georgia.

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