Finaccess takeover of Restaurant Brands
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Investment firm Finaccess’ takeover bid for quick-service group Restaurant Brands has been declared unconditional, with the firm accumulating 61.73 per cent of shares in the business.
While the firm’s offer specifies it is seeking 75 per cent of shares in the business, it was able to declare the offer unconditional should it reach over 50 per cent.
Shares in the business spiked almost 2 per cent after the news, increasing 17 cents to $8.92 per share, though the offer is paying $9.45 per share.
Group chief executive Russel Creedy was among those who decided to sell shares, offering up his 571,601 share stake in the business – an offer worth approximately $5.4 million.
While the offer is now considered unconditional, the end date has been automatically extended to 26 March, and the Restaurant Brands board continues to recommend shareholders accept the partial takeover for their shares in the absence of a greater offer.
The QSR group declared it had increased full-year sales to $794 million last week, due to strong growth in the KFC business in Australia and New Zealand.
KFC New Zealand saw sales increase to $336.5 million, a 5.3 per cent increase over the previous period, while Australian operations saw 27.8 per cent sales growth to $178.3 million.
Questions & Answers
Q.Why has Finaccess declared its takeover bid unconditional if it holds less than its stated target of shares?
Why has Finaccess declared its takeover bid unconditional if it holds less than its stated target of shares?
Finaccess was able to declare the offer unconditional because it reached over 50 per cent of the shares. Its offer document specified this condition for proceeding without reaching the full 75 per cent target.
Q.How did the CEO of Restaurant Brands respond to the takeover offer?
How did the CEO of Restaurant Brands respond to the takeover offer?
Group chief executive Russel Creedy decided to sell his shares in the business. He offered his 571,601 share stake, which was valued at approximately $5.4 million under the offer terms.
Q.Which parts of Restaurant Brands' business have shown the strongest sales growth recently?
Which parts of Restaurant Brands' business have shown the strongest sales growth recently?
The KFC business in Australia and New Zealand demonstrated strong growth. Australian operations saw sales increase by 27.8 per cent, while KFC New Zealand experienced a 5.3 per cent rise in sales.
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