Jubilant Foodworks to acquire residual 10% stake in Golden Harvest; stock climbs ~1.5%

22 Mar 2022 , 02:45 PM

Jubilant Foodworks Limited has issued a notice to Golden Harvest to exercise its call option for the acquisition of the remaining 10% equity stake in JGHL from Golden Harvest. Accordingly, JFL will hold the complete 49% equity stake of Golden Harvest in JGHL, and post this transaction, JGHL shall become a wholly-owned subsidiary of JFL.

Earlier in September 2021, JFL had informed the stock exchanges of JFL’s exercise of the call option for acquiring a 39% equity stake in JGHL from Golden Harvest.

The transaction will be based on a Valuation Report to be obtained from a chartered accountant/ Independent Accounting Firm and hence on an arm’s length basis, all consideration payable in cash.

The acquisition will be completed by April 27, 2022 subject to receipt of all applicable approvals, as may be required.

Post this development, Jubilant Foodworks is now trading at Rs2,608.30 up by Rs54 or 2.11% from its previous closing of Rs2,554.30 on the BSE. The scrip touched day’s high and low of Rs2,612.05 and Rs2,482.65 respectively.