(Alliance News) - DP Eurasia NV on Tuesday received a takeover bid from Jubilant FoodWorks Ltd's Dutch subsidiary for its remaining shares and separately reported a boost in year-to-date sales.
Shares in DP Eurasia were trading 22% higher at 83.51 pence each in London on Tuesday midday.
DP Eurasia is a master franchisee for Domino's Pizza Group PLC in Turkey, Azerbaijan and Georgia. Jubilant Foodworks owns the master franchise for Domino's Pizza in India, Nepal, Sri Lanka and Bangladesh. It also operates Popeyes and Dunkin' Donuts.
Jubilant Foodworks' Dutch division, Jubilant Foodworks Netherlands BV, currently holds a 48.84% stake in DP Eurasia.
Jubilant Foodworks plans to make a purchase offer of 85 pence in cash for each DP Eurasia share held, valuing the entire company's issued share capital at GBP124.6 million. The remaining shares not owned by Jubilant Foodworks are valued at GBP63.7 million.
The offer price represents a premium of approximately 24% to the group's closing share price on Monday of 68.5p per share.
Separately, DP Eurasia reported that in the 10 months to October 31, group system sales for continuing operations grew 38% to TRY6.20 billion, or GBP169.8 million, from TRY4.50 billion for the corresponding 10 months a year ago.
DP Eurasia also said it delivered "excellent" like-for-like revenue growth in Turkey of 30%, which reflected the company's "ongoing focus on network expansion, strategic pricing, product and service innovation," it said.
Azerbaijan and Georgia delivered LFL growth of 7.7% and 5.0% respectively in local currencies.
Additionally, online delivery system sales in Turkey increased to 84% from 81% a year ago.
DP Eurasia also noted that its net new store opening momentum was "maintained", with 41 Domino's Pizza openings in Turkey in the 10 months.
Looking ahead, the restaurant owner said it continues to trade in line with its full-year guidance. It expects an LFL growth rate in the high teens and 35 to 40 net store openings for Domino's Pizza.
Chief Executive Officer Aslan Saranga said: "Strong trading momentum has been maintained, and we remain dedicated to our well-designed, targeted strategy. Execution of this enables us to continue to deliver solid growth, as we focus on three core areas - strategic pricing and product innovation, continued digital innovation, and operational efficiencies to generate sustainable profitability.
"This has been another excellent period for the group, and we look forward to a strong end to the financial year."
By Sabrina Penty, Alliance News reporter
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