Restaurant Brands Asia shares fall 7% from day's high as Ajanta Pharma says report of buying stake as 'incorrect'

Restaurant Brands Asia shares fall 7% from day's high as Ajanta Pharma says report of buying stake as 'incorrect'

• Burger King's India, Indonesia operator's shares drop 7% after Ajanta Pharma denial
• Ajanta Pharma denies buying Everstone's stake in Restaurant Brands Asia.
• Restaurant Brands Asia plans a board meeting to consider raising funds

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Shares of Burger King's India and Indonesia franchisee Restaurant Brands Asia fell 7% from day's high on January 20 after Ajanta Pharma clarified that the report of it buying Everstone's stake is 'incorrect'.

On January 19, Reuters reported, citing two sources, that private equity firm Everstone will sell its entire 11.26% stake in Restaurant Brands Asia.

Under the deal, Restaurant Brands Asia will get a new strategic investor, said the two sources, who declined to be named as the matter is confidential, reported Reuters.

One source also told Reuters that the family office of the founders of Ajanta Pharma, which also runs other restaurant businesses, is set to be the strategic investor in the deal, and could inject up to Rs 800 crore in the company.

At 1:20 pm on January 20, Restaurant Brands Asia shares were trading 2.5% lower at Rs 65.15 apiece after hitting an intraday high of Rs 68.22 and intraday low of Rs 63.72.

Restaurant Brands Asia told Indian stock exchanges last week that it planned to hold a board meeting on Tuesday to "consider and evaluate raising of funds". It did not elaborate.

"We would like to clarify that neither Ajanta Pharma Limited nor its Management is party to, and involved in, the transaction referred to in the said news article. The Company or its Management has not entered into, discussed, negotiated, or considered any proposal relating to the acquisition of any stake in Restaurant Brands Asia or any Burger King franchise entity. Accordingly, the reference to Ajanta Pharma Limited in the said news article is incorrect and does not relate to the Company. The Company also denies the rumours and speculation circulating on social media in this regard," said Ajanta Pharma in a stock exchange filing on January 20.

It is to be noted that Ajanta Pharma promoter Ayush Agarwal is associated with Lenexis Foodworks.

Lenexis Foodworks' brands include Chinese Wok, Big Bowl and The Momo Co.

Restaurant Brands Asia has a market capitalisation of Rs 3,800 crore in Mumbai.