Jubilant Foodworks plans to acquire majority stake in DP Eurasia for 73 mn euros

Jubilant FoodWorks on Tuesday said that its wholly owned subsidiary, Jubilant Foodworks Netherlands B.V. (JFN), plans to acquire the remaining shares of DP Eurasia for 73.35 million euros. JFN, which currently holds 48.84% ordinary shares of DP Eurasia, plans to acquire remaining 51.16% shares in the company from its existing shareholders.

DP Eurasia is a public company listed with London Stock Exchange PLC, and is the exclusive master franchisee of the Domino's Pizza brand in Turkey, Azerbaijan, and Georgia, as per a regulatory filing by Jubilant FoodWorks.

“The company 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,” it says in the release.

“As part of the proposed acquisition, JFN proposes to acquire the entire issued and outstanding ordinary share capital of DP Eurasia not already held by JFN,” it adds.

It further states that JFN plans to acquire the ordinary shares of DP Eurasia at a price of up to 85 pence per ordinary share which represents a premium of around 24.1% to the closing share price of 68.5 pence per DP Eurasia share on November 27, 2023. The aggregate purchase consideration shall be up to 73.36 Million euros approximately.

DP Eurasia along with its subsidiaries offers pizza delivery and takeaway/eat-in facilities at its 694 stores (678 in Turkey, 10 in Azerbaijan and 6 in Georgia) and operates an asset-light, scalable business through franchised stores contributing to 88% of the overall stores. It is the biggest pizza delivery company in Turkey, it states.

In addition to the pizza business, the group also has its own coffee brand named ‘COFFY’, which trades from 67 stores at period-end, 78% of which are franchised.

The company’s EBITDA margin in the September quarter was at 20.9% as against 24.3% in the same period last year.

Meanwhile, shares of Jubilant FoodWorks ended 0.1% lower at ₹544.35 apiece on the BSE.