DP Eurasia shareholders reject new Jubilant FoodWorks supply
- Jubilant FoodWorks made an preliminary takeover strategy for DP Eurasia final month
- DP Eurasia was Russia’s third-largest pizza supply agency till quitting this 12 months
Shareholders at DP Eurasia have resoundingly rejected a revised takeover supply from Jubilant FoodWorks.
DP Eurasia, the unique grasp franchisee for Domino’s Pizza in Azerbaijan, Georgia and Turkey obtained a 95p per share bid valuing it at £140million from the Indian meals service enterprise on Tuesday.
Jubilant’s Dutch division made an preliminary strategy for DP Eurasia final month after elevating its stake within the group from 49 per cent to 53.5 per cent.
![Scope: DP Eurasia is Domino's Pizza's master franchisee in Azerbaijan, Georgia and Turkey](https://i.dailymail.co.uk/1s/2023/12/21/11/79208559-12889217-image-a-10_1703159436200.jpg)
Scope: DP Eurasia is Domino’s Pizza’s grasp franchisee in Azerbaijan, Georgia and Turkey
Its 85p per share deal was rejected for being too low, with DP Eurasia bosses additionally declaring they have been ‘extraordinarily upset’ on the ‘unsolicited and opportunistic approach’ Jubilant made the supply.
Jubilant subsequently elevated its bid by one other 10 pence per share on Tuesday, however the DP Eurasia board mentioned the proposal ‘continues to basically undervalue’ the corporate and its prospects.
Following session with main institutional buyers, DP Eurasia mentioned there was ‘unanimous settlement’ amongst them to not help the brand new deal.
Jubilant, which holds the Domino’s grasp franchise in India, Bangladesh, Nepal and Sri Lanka, requires backing from three-quarters of shareholders to get the takeover accepted.
The agency added: ‘As lengthy as this establishment is maintained, Jubilant Foodworks can’t, with out the help of those shareholders, de-list the corporate or put in place any of the mechanisms to squeeze out the minority shareholders set out in its supply doc.
‘The board intends to make use of this energy of shareholder help to encourage Jubilant Foodworks to supply a good value that the board can suggest and that shareholders are prepared to simply accept.’
DP Eurasia was the third-largest pizza supply enterprise in Russia till quitting the nation earlier this 12 months due to the Ukraine battle’s escalation.
It was closely criticised for protecting its eating places open, which it claimed was to guard employees, lengthy after many different corporations had stopped or introduced plans to close down their Russian operations.
After plans to promote its DPRussia subsidiary failed, it determined as a substitute to make the division file for chapter in Russia over the summer season.
In its most up-to-date buying and selling replace, DP Eurasia reported gross sales jumped by over a 3rd within the ten months ending October on the again of sturdy demand in Turkey.
For the complete 12 months, the corporate expects like-for-like gross sales development within the ‘excessive teenagers, at the least 35 to 40 new Domino’s Pizza retailer openings and 50 to 60 extra institutions belonging to its espresso store model, COFFY.
DP Eurasia shares have been 0.3 per cent up at 93.3p on early Thursday afternoon, about 36 per cent above their worth previous to Jubilant’s first takeover supply.