Domino's to be sold for a staggering price

Food service company Jubilant Foodworks announced on Tuesday that it will acquire shares of DP Eurasia, which is listed on the London Stock Exchange, for 73.35 million Euros (80.3 million dollars) in cash.

THEY REQUESTED THE MAJORITY STAKE

DP Eurasia is the sole master franchisee of the Domino's Pizza brand in Turkey, Azerbaijan, and Georgia. Jubilant Foodworks, a subsidiary of the Indian food company Jubilant Bhartia Group, announced that it plans to acquire the majority stake in DP Eurasia, the owner of Domino's Pizza in Turkey, Azerbaijan, and Georgia.

According to the report in Halk Tv, it is stated that Jubilant plans to purchase DP Eurasia's common shares at a price of approximately 1.06 dollars per common share. This represents an increase of approximately 24.1% compared to DP Eurasia's closing share price of 0.78 dollars on Monday. The total acquisition price will thus be approximately 73.35 million Euros.

THE COMPANY'S VALUE WAS TAKEN INTO ACCOUNT

The following statements were included in the company's announcement:

“Jubilant will leverage its experience as India's largest food service company to assist DP Eurasia's growth plans and enable it to reach its potential. Jubilant FoodWorks Ltd stated in its filings that the proposed acquisition will allow JFN to capture a larger share of future value creation."

THE FIRM'S OTHER CORPORATE VENTURES

To finance the acquisition, Jubilant will use a combination of an existing term loan facility from HSBC, supported by a corporate guarantee provided by Jubilant, and a new long-term loan facility from HSBC, also supported by a corporate guarantee. The filing stated that this was issued by Jubilant in favor of HSBC. Jubilant said that in addition to the existing 45.89 million Euro guarantee it provided to secure repayment obligations for the existing term loan facility from HSBC, Jubilant will guarantee repayment obligations to HSBC of up to 60 million Euros.

DP Eurasia currently has nearly 678 stores in Turkey, 10 in Azerbaijan, and nearly 6 in Georgia. In addition to the pizza business of the group, which owns Turkey's largest pizza delivery company, it also includes its own coffee brand, COFFY, which operates in 67 stores, 78 percent of which are franchises.

News Source: 12punto