Possible takeover for Restaurant Brands

The franchise group behind several KFC Australia outlets, Restaurant Brands New Zealand has entered into discussions with Finaccess Capital regarding a potential take-over arrangement.

A strong result saw Restaurant Brands post a seven per cent increase in group net profit after tax in the first half of FY19 to NZ$20.4m ($18.73m), with reports indicating the proposed partial take-over offer would see Finaccess Capital acquire 75 per cent of Restaurant Brands New Zealand shares.

While there is no certainty that the take-over will be finalised, reports have been bolstered by the announcement Finaccess has offered to pay NZ$9.45 ($8.68) cash per share.

The Mexican capital company’s offer is 24 per cent higher than Restaurant Brand’s closing share price on Wednesday, with the franchise group announcing the two companies are working together on terms.

Mexican capital firm, Finaccess invests in retail chains across Europe and China, with stakes in the operators of Pizza Hut, Burger King, KFC and Starbucks chains, Restaurant Brands’ primary business ventures.

The New Zealand franchise group operates Pizza Hut, KFC and Carl’s Jnr. Chains across the country, with additional investments in Australian KFC outlets and some franchise chains in Hawaii.

In September, Inside Franchise Business reported that Restaurant Brands had boosted its bottom line following the acquisition of 13 new KFC Australia outlets.

KFC Australia stores contributed $103.4m in sales, up 28.8 per cent on the previous year’s results.