Fast food major Jubilant FoodWorks on Tuesday said its subsidiary Jubilant FoodWorks Netherlands BV (JFN) will buy an additional 51.16% stake in DP Eurasia for €73.35 million (Rupees 670 crore).
DP Eurasia is a public company listed with the London Stock Exchange, and is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan and Georgia.
Jubilant FoodWorks currently holds a 48.84% stake in DP Eurasia. It will acquire the rest of the shares via an open offer and market purchase. For funding the acquisition, the company would be using a combination of existing and a new term loan facility availed from HSBC (which is backed by the corporate guarantee issued by the company).
The largest pizza delivery company in Turkey, DP Eurasia offers pizza delivery and takeaway and eat-in facilities at its 694 stores, including 678 outlets in Turkey, 10 in Azerbaijan, and 6 in Georgia. In addition to the pizza business, the group also has its own coffee brand, COFFY, which trades from 67 stores.