Jubilant FoodWorks share price hits 52-week high on acquiring full control of Fides Food Systems

Research firm Jefferies has maintained a buy rating with a target at Rs 3,050 per share.

February 22, 2021 / 10:15 AM IST
 
 
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Jubilant FoodWorks share price touched a 52-week high of Rs 3,082.95, rising a percent in early trade on February 22 after the company's subsidiary entered into a purchase agreement to fully acquire Fides Food Systems Coöperatief U.A.

Jubilant Foodworks Netherlands B.V., a wholly-owned subsidiary of the company, has entered into a purchase agreement with Turkish Private Equity Fund II L.P. to fully acquire Fides Food Systems Coöperatief U.A. which holds 32.81 percent equity shares in DP Eurasia N.V., as per the release.

Jubilant Foodworks Limited has also executed the purchase agreement as guarantor in connection with the investment obligations of Jubilant Foodworks Netherlands B.V.

DP Eurasia is a public company listed with London Stock Exchange PLC, and is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia.

DP Eurasia (together with its subsidiaries) offers pizza delivery and takeaway/eat-in facilities at 771 stores (568 in Turkey, 190 in Russia, 9 in Azerbaijan and 4 in Georgia as on 31 December 2020).

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Jefferies | Rating: Buy | Target: Rs 3,050

The 32.8% stake buy in DP Eurasia was at an attractive valuation, while this raises concerns of volatility & bandwidth. Despite being the largest shareholder, there won’t be line-by-line consolidation, reported CNBC-TV18.

Credit Suisse | Rating: Neutral | Target: Rs 2,450

DP Eurasia valued at a large discount to other listed Domino's Franchisees and increases Jubilant's addressable market. The dynamics of these markets could be very different, reported CNBC-TV18.

jubila

At 09:58 hrs, Jubilant Foodworks was quoting at Rs 3,061.55, up Rs 110.30, or 3.74 percent on the BSE.
Moneycontrol News
first published: Feb 22, 2021 10:15 am

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