Inspira Global to buy controlling stake in Burger King India operator RBA as Everstone exits
Restaurant Brands Asia said on Tuesday Inspira Global will invest up to 34.16 billion rupees ($375.06 million) for a controlling stake in the Burger King India operator, as private equity firm Everstone exits its stake.
The deal comes as fast food chains struggle to accelerate their sales in the world's most populous country, where they face price-conscious consumers and stiff competition from cheaper local upstarts.
RBA, which also operates Burger King and Popeyes in Indonesia, has posted a string of losses since it went public in 2020 in a blockbuster IPO.
The company's stock has also fallen sharply from a peak of 213.8 rupees it hit in the month of its debut. Ahead of the deal announcement on Tuesday, RBA's shares closed 4.7% lower at 63.68 rupees, giving the company a valuation of $408.4 million.
Inspira, an Indian business group which operates brands such as Chinese Wok, Big Bowl and The Momo Co, is paying 70 rupees per share in the deal, a premium of about 10% to Tuesday's closing price, RBA said.
Inspira will buy Everstone's entire stake of 11.26% in RBA from QSR Asia for about 4.6 billion rupees, and plans to invest about 9 billion rupees more through a preferential allotment of shares and another 6 billion rupees through warrants, giving it a total stake of about 35% in the company.
That will trigger a mandatory open offer to RBA's public shareholders for 14.56 billion rupees, which, if fully subscribed, will give Inspira a near 61% stake in the company's expanded voting capital, RBA added.
Reuters reported on Monday that RBA was set to bring in a new strategic investor in a deal that would see Everstone exit its entire stake in the company.
Earlier this month, Devyani International and Sapphire Foods — KFC and Pizza Hut franchisees in India — announced a $934 million merger deal, which was seen as a move to support scalability.
($1 = 91.0780 Indian rupees)
