Brazil Fast Food Corp., the second largest QSR chain in Brazil with 1,057 units, has announced its entry into a definitive merger agreement. The proposal is pursuant to which Ricardo Figueiredo Bomeny, CEO, and other shareholders representing approximately 74 percent of the company's outstanding shares, propose to acquire all outstanding shares at a price of $15.50 in cash per share, or a total equity value of approximately $32.5M (U.S. dollars).
Under the terms of the merger agreement, company stockholders would receive $15.50 in cash for each outstanding share of common stock they own.
The merger, which is expected to close during Q4, requires the approval of the majority of the non-controlling stockholders who vote on the merger agreement. The transaction is not contingent on any financing.
The company's board unanimously approved a merger agreement under which the investor group would acquire the company and take it private.
"I believe this transaction offers an exciting opportunity for Brazil Fast Food Corp. and its shareholders by delivering immediate value to those shareholders while allowing us to focus on long-term strategy and goals as a private company," Bomeny said.
Included in Brazil Fast Food Corp.'s portfolio are KFC and Pizza Hut units.
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