Everstone explores stake sale in India and Indonesia's Burger King franchisee: Sources

Burger King

Private equity firm Everstone Capital is considering selling its stake worth $314 million in Restaurant Brands Asia Ltd, the master franchisee of Burger King in India and Indonesia, two sources with knowledge of the matter told Reuters.

The Singapore-headquartered buyout firm is in talks with one adviser to explore the sale, the sources said, declining to be identified as the matter is private.

Everstone Capital, through its investment vehicle QSR Asia Pte Ltd holds a 40.9% stake in Restaurant Brands, according to Refinitiv data.

Everstone Capital declined to comment and Restaurant Brands Asia did not respond to Reuters queries seeking comment.

Restaurant Brands Asia had a market value of $768 million based on Friday's price of 129 Indian rupees. Its shares have jumped 49% from a record low struck in mid-May.

The potential sale comes at a time when consumer spending is rebounding following the easing of coronavirus restrictions in India and Indonesia, which have helped boost their second quarter economic growth to their fastest pace in a year.

India's economy grew 13.5% on-year in April-June, while Indonesia's expanded 5.44%.

Restaurant Brands Asia, formerly known as Burger King India Ltd, was incorporated in 2013 following a partnership formed between Everstone and Burger King Worldwide Inc to develop the fast-food chain's presence in India.

Everstone Capital is the private equity arm of Everstone Group, which manages over $7 billion in assets.

The private equity firm focuses on the mid-market and invests in businesses focused on India and Southeast Asia.

Mumbai-based Restaurant Brands Asia has since grown to operating 315 restaurants in the country as of end-March this year, according to its latest annual report.

Restaurant Brands Asia holds Burger King's exclusive national master franchisee in India and Indonesia, where it also owns and operates 177 restaurants as of end-March, the annual report shows.

Under the master franchisee agreement, Restaurant Brands Asia has agreed to develop and open at least 700 restaurants by end of 2026 in India, according to the annual report.