Devyani International Ltd, which operates quick service restaurant chains such as KFC, Pizza Hut, and Costa Coffee through franchise agreements, has approved the acquisition of up to 80.72 percent in homegrown chain 'Biryani by Kilo'. The decision was taken at its board meeting held on Thursday, 24th April.
The Jaipuria family-promoted Devyani International Ltd (DIL) is set to acquire a majority stake in Sky Gate Hospitality, which operates restaurants under the 'Biryani by Kilo' brand, along with other brands. After the transaction, Sky Gate will become a subsidiary of Devyani International.
The company in an exchange filing, said "Acquisition of up to 80.72% equity stake, on fully diluted basis, in Sky Gate Hospitality Private Limited along with its subsidiaries."
"The Company shall discharge the part consideration by way of issue and allotment of 2,37,19,187 equity shares of the Company having face value of INR 1/- each to the Sellers, at a price of INR 176.78/- per equity share (including premium of INR 175.78/-), on a preferential basis," it added.
Sky Gate along with its subsidiaries owns brands, including ‘Biryani By Kilo’, ‘Goila Butter Chicken’ and ‘The Bhojan’. Sky Gate predominately operates through a chain of over 100 outlets including Dine-in restaurants in over 40 cities.
The proposed acquisition implies an equity value of Rs 519 crore of Sky Gate. The equity value for acquisition of up to 80.72 percent equity stake will be be Rs 419.31 crore.
The acquisition is expected to be completed within a period of 15 days from the date of the approval of shareholders by way of a special resolution for preferential issue of equity shares, the company said.
Shares of the company were up 1.37 percent to quote at Rs 178 per share on the NSE at around 1 PM.
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