Private equity firm Everstone Capital is set to sell its entire 11.26% holding in Restaurant Brands Asia, the master franchisee of Burger King in India and Indonesia, news agency Reuters reported, citing sources. The transaction is expected to be announced on Tuesday, it said.
Everstone's stake is held through its investment vehicle QSR Asia Pte Ltd and is currently valued at about $57 million, based on Refinitiv data. Restaurant Brands Asia has a market capitalisation of roughly $437 million on the Mumbai stock exchange.
The deal will bring in a new strategic investor for Restaurant Brands Asia, the report said. The family office of the founders of Ajanta Pharma has reportedly come up as the likely investor. The group already has interests in the restaurant sector.
The Ajanta Pharma founders' family office may reportedly invest up to Rs 800 crore. While the exact size of the stake to be acquired is not yet clear, the source added that the family office could eventually seek a majority holding if other shareholders decide to exit over time.
As a small to mid-sized company, an investment of up to Rs 800 crore would be substantial for Restaurant Brands Asia. Such an investment could influence the company's future fundraising, its pace of expansion, and its decision-making structure.
Restaurant Brands Asia informed Indian stock exchanges last week that it would hold a board meeting on Tuesday to “consider and evaluate raising of funds,” without providing further details.
Founded in 2013 through a partnership between Everstone and Burger King Worldwide Inc, Restaurant Brands Asia expanded to 500 restaurants in India and 177 in Indonesia. Under its franchise agreement, the company aimed to develop at least 700 Burger King outlets in India by 2026.
Everstone Capital, managing over $8 billion in assets, primarily invests in mid-market businesses across India and Southeast Asia.
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