The takeover of fast food operator Restaurant Brands is all but assured as the bid gained the important 90 percent ownership level to allow the compulsorily buy out of minority shareholders.
The Mexican majority shareholder, Finaccess Restauración, made the bid of $5.05 a share in late September as it secured the near 5% stake of the Accident Compensation Corporation on top of its own 75% shareholding.
Finaccess has been adamant the offer was its best and final price, valuing the company at $630 million, which would not be increased.
“Finaccess will exercise its rights under the Takeovers Code to compulsorily acquire any shares for which it does not receive acceptances to the offer,” it said in a statement to the NZX.
Restaurant Brands operated 516 KFC, Pizza Hut, Taco Bell and Carl’s Jr. brands in New Zealand, Australia, California, and several Pacific territories.
The offer was strongly backed by the company’s independent directors, despite the price being below a valuation of the $5.24-$6.20 by independent adviser.
They said the price was significantly above recent market prices, and was a pragmatic result in an uncertain market.
Restaurant Brands was a sharemarket high flyer for many years, but was hard hit by the Covid-19 shutdowns and has struggled with declining profits, rising labour costs, tougher competition, and under performance of its Californian business.
Shareholders have until November 25 to accept the offer and be paid out quickly, after which the formal process to acquire outstanding shares will be started with the company ultimately being delisted from the NZX.
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