Domino’s Pizza buys German, Asian businesses for $150m
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Domino’s Pizza Enterprises is set to acquire the balance of its German joint venture operations for $150 million.
The acquisition will be funded by an institutional placement of about 2.3 million new shares at $66.38 per share, indicating strong support from existing and new investors. Eligible shareholders will also be invited to apply for up to $30,000 worth of new shares.
The pizza chain says it will use the money to expand its global footprint while any surplus funds will be used for debt retirement.
Domino’s Pizza Enterprises CEO, Don Meij, said the support from new and existing institutional investors reflected shareholder feedback before the capital raising.
“We look forward to acquiring full ownership in Domino’s Pizza Germany and continuing to build the momentum across our network and delivering value to our customers, team members, franchisees and investors.”
The company has also completed the acquisition of its Domino’s Malaysia and Singapore businesses while the purchase of its Cambodian subsidiary is pending regulatory approval, which will be completed early next year.
The former CEO of Domino’s Belgium and Luxembourg business, Ringo Joannes, will now take charge of these Asian markets.
The international expansion is part of a rapid expansion program by the pizza company, which recently announced plans to open another 10 stores across Australia and New Zealand before the end of the year.
Questions & Answers
Q.How will Domino's Pizza Enterprises finance the acquisition of its German joint venture operations?
How will Domino's Pizza Enterprises finance the acquisition of its German joint venture operations?
The acquisition will be funded through an institutional placement of approximately 2.3 million new shares. Eligible shareholders will also have the opportunity to apply for new shares, with the company aiming to raise $150 million this way.
Q.What is the company's plan for any surplus funds remaining after the German acquisition?
What is the company's plan for any surplus funds remaining after the German acquisition?
Domino's Pizza Enterprises intends to use any surplus funds generated from the capital raising for debt retirement. The primary goal for the raised money is to expand its global footprint, with debt reduction as a secondary use.
Q.Which specific Asian markets has Domino's Pizza Enterprises recently acquired or is in the process of acquiring?
Which specific Asian markets has Domino's Pizza Enterprises recently acquired or is in the process of acquiring?
The company has completed the acquisition of its Domino’s Malaysia and Singapore businesses. The purchase of its Cambodian subsidiary is still pending regulatory approval, which is expected to be finalised early next year.
Q.Who has been appointed to manage the newly acquired and pending Asian businesses for Domino's Pizza Enterprises?
Who has been appointed to manage the newly acquired and pending Asian businesses for Domino's Pizza Enterprises?
Ringo Joannes, who was previously the CEO of Domino’s Belgium and Luxembourg business, will now be responsible for taking charge of these Asian markets. This appointment is part of the company's broader international expansion efforts.
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