Everstone explores stake sale in India and Indonesia's Burger King franchisee - sources

Restaurant Brands Asia

14/10/2022 08:01

By Yantoultra Ngui
       SINGAPORE, Oct 14 (Reuters) - Private equity firm
Everstone Capital is considering selling its stake worth $314
million in Restaurant Brands Asia Ltd  RESR.NS , 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%.  urn:newsml:reuters.com:*:nL1N3071KM  urn:newsml:reuters.com:*:nL1N2ZH069
    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. 
 (Reporting by Yantoultra Ngui; Editing by Anshuman Daga and Kim
Coghill)
 ((Yantoultra.Ngui@thomsonreuters.com;))