Jubilant Foodworks Limited has made a significant announcement on November 28, revealing its subsidiary, Jubilant Foodworks Netherlands B.V. (JFN), is set to acquire the remaining shares of DP Eurasia for a total consideration of 73.35 million euros. This strategic move positions DP Eurasia as a wholly owned subsidiary of Jubilant Foodworks, solidifying the company’s commitment to expanding its footprint in the international market.
As of the announcement date, JFN currently holds a 48.84 percent stake in DP Eurasia. The acquisition will be executed through a combination of an open offer and market purchase. JFN plans to finance the acquisition using a mix of existing resources and a new term loan facility from HSBC, supported by a corporate guarantee issued by Jubilant Foodworks.
DP Eurasia, listed on the London Stock Exchange, serves as the exclusive master franchisee for the Domino’s Pizza brand in Turkey, Azerbaijan, and Georgia. The company boasts a network of 694 stores, with 678 in Turkey, 10 in Azerbaijan, and 6 in Georgia, as of October 31, 2023. Notably, DP Eurasia holds the title of the largest pizza delivery company in Turkey and extends its services beyond pizza with its coffee brand, COFFY, operating in 67 stores.
For the first half of 2023, DP Eurasia reported a robust financial performance, with revenues amounting to 1,581 million Turkish lira and adjusted net income reaching 229 million Turkish lira. In light of this acquisition, JFN has proposed to acquire ordinary shares of DP Eurasia at a price of up to 85 pence (equivalent to EUR 0.97 as of November 27, 2023) per ordinary share. This represents a premium of approximately 24.1 percent over the closing share price of 68.5 pence per DP Eurasia share on the same date.
Following the announcement, shares of Jubilant Foodworks remained steady at Rs 545, indicating a cautious market sentiment as investors assess the implications of this strategic move.
