Food service company Jubilant Foodworks said Tuesday it will acquire the stake it doesn’t already own in London Stock Exchange-listed DP Eurasia for around €73.35 million (around $80.3 million) in cash.
DP Eurasia is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan and Georgia.
Jubilant Foodworks, which runs Domino’s Pizza stores in India, currently owns a 48.84% stake in DP Eurasia through its subsidiary Jubilant Foodworks Netherlands BV (JFN). It will buy the remaining 51.16% stake via an open offer as well as a market purchases.
Jubilant Foodworks ended Tuesday’s trading session flat at Rs 545 per share.
JFN will use a combination of the 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 the bank.
The corporate guarantee will be for an amount up to €60 million. The guarantee will remain valid till full repayment of the loan or until 35 months from the date of the loan tenure, whichever is earlier.
DP Eurasia, along with its subsidiaries, offers pizza delivery and takeaway/eat-in facilities at its 694 stores, of which 678 are in Turkey, 10 are in Azerbaijan and six are in Georgia as of October 31, 2023.
It also operates an asset-light business through franchised stores contributing to 88% of the overall stores. It claims to be the largest pizza delivery company in Turkey. It also operates its own coffee brand, COFFY, which sells at 67 stores, of which 78% are franchised.
JFN has proposed acquiring DP Eurasia's shares at a price of up to 85 pence (around $1.06) per share. This reflects a premium of 24.1% over DP Eurasia's closing share price of around $0.78 as on Monday, Jubilant said.
In the first half of calendar year 2023, DP Eurasia posted revenue of $54.6 million. Its total revenue stood at $76.7 million last year.
