Burger King is creating some buzz today. The stock price, which had closed yesterday at Rs.155.10, opened slightly higher today at Rs.156.80 and went on to hit an intraday high at Rs.161. Its 52-week high stands at Rs.219.15.
The stock price has reacted to the company putting in a binding offer to acquire F&B Asia Ventures(Singapore) Pte, for the proposed acquisition of a controlling stake in PT Sari Burger Indonesia.
F&B Asia accepted the Binding Offer on November 1, 2021. The aforesaid transaction shall be structured as a combination of primary and secondary transactions in the manner set out below: a) acquisition of 83.24% of the ordinary shares in BK Indonesia from existing shareholders, based on a pre-money enterprise value of USD 183 million on a cash-free and debt-free basis for 100% stake of BK Indonesia. The valuation will be adjusted for any cash or debt in the business of BK Indonesia, normalized working capital, and other closing adjustments for determination of equity value at closing; and
On the completion of acquisition of shares as above or on the immediately succeeding business day, the Company shall make fresh capital infusion in BK Indonesia for an amount aggregating up to USD 40 million by way of subscription to fresh shares issued by BK Indonesia, which shall be used for the future growth of BK Indonesia, including supporting any of its future business requirements, business expansion plans and acquisition of any other business/asset/brand.
Upon completion of the acquisition of shares from existing shareholders, the Company will hold 83.24% stake in BK Indonesia, and the remaining stake will be held by PT Mitra.