Following the exit of Everstone Capital as the promoter entity of Restaurant Brands Asia Ltd., the quick-service restaurant company that operates Burger King, has confirmed it will be acquired by Inspira Global. This effectively means Aayush Madhusudan Agrawal, a promoter of Inspira Global, will acquire a controlling stake in RBA.
The acquisition has been valued at around Rs 70 per share, representing a 10% premium from Tuesday's closing price. However, it must be noted that the deal will be executed inter alia through Lenexis Foodworks, which is the food and beverage arm of Inspira Global.
Lenexis Foodworks comes with a decade worth of experience in the QSR space, having managed over 250+ outlets of Chinese Wok across 45+ cities in India. The entity will now utilise that synergy to manage and operate Burger King outlets across the country. It also runs brands like Big Bowl and The Momo Co
Apart from acquiring the entire 11.26% shareholding of QSR Asia Pte. Ltd. for a figure of around Rs 460 crore, Inspira Global proposes to infuse around Rs 900 crore through a preferential allotment of equity shares and Rs ₹600 crore through the preferential allotment of warrants, with the transaction set to trigger an open offer for public shareholders, Restaurant Brands Asia confirmed in an exchange filing.
What Does This Mean For Restaurant Brands Asia?
The acquisition from Inspira Global will pave the way for Restaurant Brands Asia to scale the business further, especially with the acquiring entity set to infuse an additional Rs 900 crore.
It will also help Restaurant Brands Asia in its quest to turn profitable. The entity is yet to become profitable and reported net losses of Rs 63 crore in the September quarter of the financial year ending March 2026.
More importantly, the acquisition will help Restaurant Brands fight competitors like Jubilant Foodworks, Westlife Food and Devyani International, which is set to merge with Sapphire Foods.
Restaurant Brands Asia is the exclusive operator of Burger King in India and Indonesia. Moving forward, the company plans to add 60 to 80 new restaurants every year, with plans to reach ~800 restaurants and gross profit margins of ~70% by FY29.
The company also operates the Popeyes franchise, but it constitutes a small base for the company.
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