Domino’s Pizza (DP) Eurasia has rejected a revised takeover proposal from Jubilant Foodworks Netherlands (JFN) on the grounds that the offer does not reflect the true value of the business.
DP Eurasia holds the master franchise for the Domino’s Pizza brand in Georgia, Turkey, and Azerbaijan.
JFN stands as a fully owned subsidiary of Jubilant FoodWorks (JFW), a foodservice company headquartered in India.
JFN holds a 54.67% stake in the issued and outstanding share capital of DP Eurasia.
In its stock exchange filing, JFW stated, “Pursuant to the mandatory bid provisions contained in Article 30 of DP Eurasia’s articles of association, JFN through the Offer proposes to acquire, the remaining (up to 45.33%) of issued and outstanding ordinary share capital of DP Eurasia not already held by JFN.”
JFN’s original proposal, dated November 28, 2023, was set at 85p per DP Eurasia share. The revised offer now stands at 95p per share.
JFN intends to purchase the remaining 45.33% stake for a sum of up to €73.4 million ($80.52 million).
DP Eurasia stated in its stock exchange filing, “The non-conflicted members of the board of the Company have determined that it is significantly below what they consider to be the fair value of the DP Eurasia business and its prospects, particularly considering its continued strong performance.
“As a result, the Board, having taken advice from its financial advisors, Liberum, has concluded that it is not recommending the Revised Offer and continues to urge minority shareholders to take no action.”
The board aims to pursue ongoing discussions with Jubilant to attain a equitable offer price for DP Eurasia that aligns with their recommendation.
DP Eurasia operates 678 stores in Turkey, ten in Azerbaijan, and six in Georgia.
Additionally, it manages a coffee brand called COFFY, boasting 67 stores, of which 78% operate under franchise agreements.