Jubilant Foodworks to buy Fides Food Systems for 32.81% stake in DP Eurasia via Netherland-based arm; Stock jumps 5%

Jubilant Foodworks has executed the Purchase Agreement as guarantor in connection with the investment obligations of Jubilant Foodworks Netherlands B.V.

Feb 22, 2021 01:02 IST India Infoline News Service

Jubilant FoodWorks
Jubilant Foodworks has announced that the company will fully acquire Fides Food Systems Coöperatief U.A., Netherlands (Fides) for an agreed investment of approximately GBP 24.80 million through its wholly-owned subsidiary - Jubilant Foodworks Netherlands B.V.

Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant Foodworks Limited said, “We are happy to announce our acquisition of Fides for 32.81% equity stake in DP Eurasia, one of the large master franchisee of the Domino’s Pizza brand. We have been partners with Domino’s in India for more than twenty-five years, with that experience we hope to add value to DP Eurasia’s business and also create value for our shareholders.”

As per the regulatory filing, Fides is the beneficial owner of 32.81% of equity shares of DP Eurasia N.V. (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, Russia, Azerbaijan and Georgia. DP Eurasia (together with its subsidiaries) offers pizza delivery and takeaway/ eat-in facilities at 771 stores (568 in Turkey, 190 in Russia, 9 in Azerbaijan and 4 in Georgia as of 31 December 2020).

Notably, to this end, Jubilant Foodworks Netherlands B.V. and Jubilant Foodworks (acting as a guarantor for investment obligation of its wholly-owned subsidiary) have entered into a Purchase Agreement with Turkish Private Equity Fund II L.P., which is the sole member of Fides.

Also, Jubilant Foodworks has executed the Purchase Agreement as guarantor in connection with the investment obligations of Jubilant Foodworks Netherlands B.V.

Following the deal, Jubilant FoodWorks hit a new 52-week high to Rs3098.55 per piece on Sensex during Monday's session. The stock has climbed nearly 5% so far today.

At around 1.13 pm, Jubilant Foodworks was trading at Rs3054.45 per piece higher by Rs103.40 or 3.50% on Sensex.

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