Jubilant FoodWorks to acquire additional 51.16% stake in DP Eurasia for Rs 670 crore

Jubilant FoodWorks Ltd (JFL), operator of Domino’s Pizza and Dunkin Donuts, plans to acquire an additional 51.16% stake in DP Eurasia NV, the exclusive master franchisee of Domino’s Pizza brand in Turkey, Azerbaijan and Georgia, it said in a stock exchange filing late Tuesday. The acquisition of the additional stake will be done through a subsidiary for EUR 73.36 million (Rs 670 crore), the foods services company said.

Presently, Jubilant FoodWorks Netherlands B.V (JFN), the company’s wholly-owned arm, holds 48.84% ordinary shares of DP Eurasia — the largest pizza delivery company in Turkey.

For funding the acquisition, JFN would be using a combination of existing term-loan facility availed from HSBC, which is backed by corporate guarantee issued by JFL and avail a new long-term facility from HSBC, again backed by corporate guarantee to be issued by JFL in favour of HSBC, the filing said.

JFN has proposed to acquire the entire issued and outstanding ordinary share capital of DP Eurasia NV not already held by it, according to the exchange filing.

DP Eurasia, along with its subsidiaries, has a pizza delivery business and takeaways and dine-in facilities at 694 stores as of October 31, 2023, JFL said. The company said it operates an asset-light, scalable business through franchised stores contributing 88 per cent to its overall business. “In addition to the pizza business, the group also has its own coffee brand, COFFY, which trades from 67 stores, 78 per cent of which are franchised,” the company added in the filing on the stock exchange.