Jubilant FoodWorks to acquire remaining 51.16% of DP Eurasia for €73.36 million via subsidiary

Jubilant Foodworks Netherlands BV, a wholly owned subsidiary of food services company Jubilant FoodWorks Ltd, is set to acquire 51.16% of DP Eurasia for €73.36 million.

JFN already owns 48.84% ordinary shares of DP Eurasia, which operates as an exclusive master franchisee of the Domino’s Pizza brand in Turkey, Azerbaijan and Georgia.

For funding the acquisition, JFN proposes to use a combination of an existing term loan facility availed from HSBC (which is backed by the corporate guarantee issued by the company), Jubilant FoodWorks Ltd said in a regulatory filing on Tuesday. 

DP Eurasia is a public company listed with London Stock Exchange PLC. Together with its subsidiaries, it offers pizza delivery and takeaway-eat-in facilities at its 694 stores. It is the largest pizza delivery company in Turkey. 

In addition to the pizza business, the group has its own coffee brand, COFFY, which trades from 67 stores, 78% of which are franchised.

“(Jubilant) has been and will be able to leverage its experience as India’s largest foodservice company to assist DP Eurasia with its growth plans so that it can achieve its potential. The proposed acquisition will enable JFN to benefit from a greater share of future value upside,” Jubilant FoodWorks Ltd said in its filings.

JFN proposes to acquire ordinary shares of DP Eurasia for up to 85 pence (equivalent to €0.97 as on 27 November) per ordinary share, which represents a premium of about 24.1% to the closing share price of 68.5 pence per DP Eurasia share on 27 November. 

Jubilant FoodWorks Ltd holds the exclusive master franchise rights to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. Jubilant FoodWorks also has exclusive rights to develop and operate Dunkin’ restaurants in India and Popeyes restaurants in India, Bangladesh, Nepal and Bhutan.

The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are closely related. There are, however, no promoter cross-holdings.