Mc Donals West Life
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BS REPORTER Mumbai, 23 July S ingapore-based invest- ment firm Arisaig Partners, which bets on consumer-driven companies, would pick up a 3.5 per cent stake in McDonald's fran- chisee, Westlife Development, for ~180 crore, it was announced on Tuesday. Westlife subsidiary Hardcastle Restaurants runs the operations of McDonald's in the west and south of India. Operations in the north and east are run by another fran- chisee named Connaught Plaza Restaurants. Arisaig would pick up the stake in Westlife via a prefer- ential allotment of 5.4 million shares, which would be made available to it at ~333.1 a piece. The deal values the firm at ~5,187 crore. Following the preferential allotment, the Jatias, promot- ers of Westlife, would hold 64.1 per cent in the company. “The funds raised through the preferential allotment would be used to invest in the growth of our business, aggres- sively increase our retail foot- print, fortify our presence in the existing markets and enable us to enter newer mar- kets,” said Amit Jatia, vice- chairman, Westlife Development. Westlife has 166 restaurants at the moment, with plans to double this number in the next two years. Westlife would join a list of marquee names such as Trent, United Breweries, Future Retail, Marico, Godrej Consumer and Jubilant FoodWorks, master franchisee of Domino’s in India, Britannia and Shopper's Stop, who are already on Arisaig's investee company list. Some Indian subsidiaries of multi- national companies who are on Arisaig's rolls include Nestle, GlaxoSmithKline Consumer and Colgate- Palmolive. Arisaig's move comes at a time when Westlife has just received approval from the high court here for consolidation of its subsidiaries with it. Initiated last year, the approval would make Hardcastle a direct sub- sidiary of it. The stock of Westlife was up two per cent on the Bombay Stock Exchange on Tuesday, to close trade at ~328.5. This was also its day’s high. PE deal values McDonald’s franchisee at ~5,187 crore ARISAIG PARTNERS TO BUY 3.5% STAKE IN WESTLIFE DEVELOPMENT Funds generated to be used for investments in expansion of business Arisaig Partners’ holdings Company Stake (%) Future Ventures 9.51 Future Retail 9.34 Britannia Ind 8.92 Trent 8.86 Marico 5.48 Jubilant FoodWorks 5.39 Colgate-Palmolive 3.53 United Breweries 3.32 Shoppers Stop 3.02 Godrej Consumer 2.73 Nestle India 1.90 As on June 30, 2013 Compiled by BS Research Bureau Source: BSE SPREADING WINGS ACROSS FIRMS A small chunk of the burger | 3.47% Stake in Westlife Development that Singapore- based Arisaig Partners will pick up | ~180 crore The cost to Arisaig Partners | ~333.05 Value of each share | ~5, 187 The total value of Westlife Development as per the deal | 166 Total no of restaurants Westlife Development runs
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Mc Donals West Life Prospects
Transcript of Mc Donals West Life
BS REPORTERMumbai, 23 July
Singapore-based invest-ment firm ArisaigPartners, which bets on
consumer-driven companies,would pick up a 3.5 per centstake in McDonald's fran-chisee, Westlife Development,for ~180 crore, it wasannounced on Tuesday.
Westlife subsidiaryHardcastle Restaurants runsthe operations of McDonald'sin the west and south of India.Operations in the north andeast are run by another fran-chisee named ConnaughtPlaza Restaurants.
Arisaig would pick up thestake in Westlife via a prefer-ential allotment of 5.4 millionshares, which would be madeavailable to it at ~333.1 a piece.The deal values the firm at~5,187 crore.
Following the preferentialallotment, the Jatias, promot-ers of Westlife, would hold 64.1per cent in the company.
“The funds raised throughthe preferential allotmentwould be used to invest in thegrowth of our business, aggres-sively increase our retail foot-
print, fortify our presence inthe existing markets andenable us to enter newer mar-kets,” said Amit Jatia, vice-chairman, WestlifeDevelopment.
Westlife has 166 restaurantsat the moment, with plans todouble this number in the nexttwo years.
Westlife would join a list ofmarquee names such asTrent, United Breweries,
Future Retail, Marico, GodrejConsumer and JubilantFoodWorks, master franchiseeof Domino’s in India,Britannia and Shopper's Stop,who are already on Arisaig'sinvestee company list. SomeIndian subsidiaries of multi-national companies who areon Arisaig's rolls includeNestle, GlaxoSmithKlineConsumer and Colgate-Palmolive.
Arisaig's move comes at atime when Westlife has justreceived approval from the highcourt here for consolidation ofits subsidiaries with it. Initiatedlast year, the approval wouldmake Hardcastle a direct sub-sidiary of it.
The stock of Westlife was uptwo per cent on the BombayStock Exchange on Tuesday, toclose trade at ~328.5. This wasalso its day’s high.
PE deal values McDonald’s franchisee at ~5,187 crore
ARISAIG PARTNERS TO BUY 3.5% STAKE IN WESTLIFE DEVELOPMENT
Funds generated to be used for investments in expansion of business
Arisaig Partners’ holdings
Company Stake (%)
Future Ventures 9.51Future Retail 9.34Britannia Ind 8.92Trent 8.86Marico 5.48JubilantFoodWorks 5.39Colgate-Palmolive 3.53United Breweries 3.32Shoppers Stop 3.02Godrej Consumer 2.73Nestle India 1.90
As on June 30, 2013Compiled by BS Research Bureau Source: BSE
SPREADING WINGSACROSS FIRMS
A small chunk of the burger
| 3.47% Stake in Westlife Development that Singapore-based Arisaig Partners will pick up
| ~180 crore The cost to Arisaig Partners
| ~333.05 Value of each share
| ~5, 187 The total value of Westlife Development as perthe deal
| 166 Total no of restaurants Westlife Development runs
