Bosses at London-listed DP Eurasia are ‘extremely disappointed’ at how India’s Jubilant Foodworks has approached a potential takeover.
Jubilant has now increased its stake in the Domino’s Pizza’s master franchisee for Turkey, Azerbaijan and Georgia from 49 per cent to 53.5 per cent.
Because Jubilant, which holds the Domino’s franchise in India, now owns more than half the London-listed company, it now has 30 days to put forward a full offer.
Delivering more: Jubilant has now increased its stake in Domino’s Pizza’s master franchisee for Turkey, Azerbaijan and Georgia from 49 per cent to 53.5 per cent
Jubilant said it would make an 85 pence per share bid for the remaining DP Eurasia shares, marking a 24 per cent premium to the group’s share price the previous day.
DP Eurasia called the proposal ‘unsolicited and unexpected’ and asked investors to ‘take no action’.
The board of the Amsterdam-headquartered business has now lambasted Jubilant, accusing the company on Friday of not trying to agree to a proposed deal before launching an offer.
It told shareholders: ‘The board is extremely disappointed that Jubilant Foodworks decided to proceed in this unsolicited and opportunistic way and without first seeking to reach an agreement on terms which the board would be able to endorse as in the best interests of all stakeholders.’
DP Eurasia’s bid from Jubliant came on the same day it reported sales jumped by 37.8 per cent in the first ten months of this year thanks to soaring demand in Turkey, where it opened 41 new stores.
The franchise operator used to be Russia’s third-largest pizza delivery firm until it exited the country earlier this year due to the Ukraine war’s escalation.
DP Eurasia decided to initiate bankruptcy proceedings for its Russian subsidiary in August after attempts to find a buyer failed.
Domino’s Pizza received severe criticism for continuing to operate in Russia long after many major corporations had already shut down or declared plans to close their operations there.
Although the group ended all investment in Russia and suspended royalty payments in March 2022, it kept restaurants open, claiming it was to protect employees and customers.
Nearly 1,600 foreign businesses continue to operate in Russia, according to the Kyiv School of Economics, such as confectionery makers Nestle and Mars, and consumer goods giant Procter & Gamble.
London-listed companies named by the organisation include Unilever, bottling group Coca-Cola HBC, and pharmaceutical firms GSK and AstraZeneca.
DP Eurasia shares were 0.6 per cent, or 0.5p, lower at 84.5p on Friday morning, but have climbed by almost half since the year began
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