Restaurant Brands receives takeover notice
Restaurant Brands has confirmed it received a non-binding indicative takeover notice from Finaccess Capital, which could see 75 per cent of the brand’s shares acquired.
While Finaccess has yet to make an official takeover offer, the notice outlines various terms and conditions that such an offer would be subject to, such as exclusivity arrangements, restrictions on delisting and on future takeover offers.
The notice includes an offer of $9.45 cash per share, representing a 24.3 per cent premium on Restaurant Brand’s closing price of $7.60 on October 17.
According to Restaurant Brands chairman Ted van Arkel, the directors have carefully considered the advantages and disadvantages of the partial takeover, and concluded that the partial takeover provides an option for shareholders to realise some future value of the shares they own at an attractive premium.
However, van Arkel notes that for now the board encourages shareholders not to take any action until they receive a company statement, which will include recommendations from the directors as well as an independent advisor’s report.
As part of the notice, Finaccess Capital said it intends to support Restaurant Brands current management team and execute their existing strategy.
Last month, it was reported that Finaccess had made the takeover offer after Restaurant Brands posted a 7 per cent increase in group net profit after tax for the first half of FY19 to $20.4 million, compared to $19.1 million the year prior.
Author: Dean Blake. This article first appeared on Inside Retail, a sibling publication to Inside Franchise Business.