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DP Eurasia urges shareholders against Jubilant Foodwork's new offer

Tue, 19th Dec 2023 11:10

(Alliance News) - DP Eurasia NV on Tuesday responded to an improved takeover bid by Jubilant Foodworks Netherlands BV.

DP Eurasia, the master franchisee of the Domino's Pizza brand in Turkey, Azerbaijan, and Georgia, has been offered 95 pence per share by the Jubilant Foodworks Ltd subsidiary.

This comes after an initial offer of 85 pence per share in November was declared by DP Eurasia to be "significantly below what they consider to be the fair value of the DP Eurasia business and its prospects."

DP Eurasia shares were up 6.3% at 93.02 pence each in London on Tuesday morning.

Jubilant Foodworks already holds the master franchise rights from Domino's Pizza to develop and operate its stores across India, Sri Lanka, Bangladesh and Nepal.

As of December 18, Jubilant Foodworks also owns 80.1 million DP Eurasia shares, representing around 54.7% of DP Eurasia's issued and outstanding share capital.

This new offer values DP Eurasia at around GBP139.3 million, of which GBP63.1 million is not currently owned by Jubilant. It also marks a 38.7% premium to DP's closing share price of 68.5 pence each on November 27, the last practicable date according to Jubilant.

After having taken advice from its financial advisors, Liberum, DP Eurasia is not recommending the revised offer and "continues to urge minority shareholders to take no action."

The board of concluded that this offer "remains significantly below what the board believes to be the fair value of the DP Eurasia business and does not reflect its prospects, particularly in light of its continued strong performance."

Looking ahead, DP Eurasia estimates its earnings before interest, tax, depreciation and amortisation for full-year 2023 to be about TRY713 million, around GBP24.1 million, which will rise to GBP30.7 million in 2024.

For 2022, DP Eurasia had reported adjusted Ebitda of TRY311.0 million, up 5.3% from TRY295.5 million in 2021.

By Hugh Cameron, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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