KKR will launch a takeover bid on Telepizza

KKR will launch a takeover bid on Telepizza


The KKR fund will launch a Public Offer of Acquisition (OPA) of exclusion on Telepizza to get the company out of the stock market, as reported to Europa Press in financial sources.

KKR's decision to launch a takeover bid two days after Telepizza and Pizza Hut officially sealed their strategic alliance and a master franchise agreement that will come into force on December 30 and that seeks to accelerate the growth of both companies in Spain, Portugal, Latin America, Andorra, Switzerland and the Caribbean. Telepizza returned to the parquet floor in April 2016, where it starred in one of the worst releases of the Spanish stock market with a drop of almost 20%. The actions of the restaurant chain have lost 37% of their value since its return to the Stock Exchange. The National Securities Market Commission (CNMV) provisionally suspended the Telepizza quotation with immediate effect, after its stock shot up 7.45% minutes before its suspension, when its securities were exchanged at 4.83 euros, and became the third market value Continuum that rose the most in the trading day.

KKR was reinforced as first shareholder of Telepizza, where it has 26.31% of the share capital, in mid-May of this year, just after signing the strategic alliance with Pizza Hut. The investment fund is currently the Telepizza's largest shareholder, followed by Tasty Aggregator (26.07%), Santander Asset Management (5.26%) and Alliance Bernstein (4.57%).

Alliance with Pizza Hut

As a result of this alliance, Telepizza plans to open 2,550 new establishments in the next twenty years in the different regions included in this agreement, some openings that will allow the creation of 50,000 new jobs in the coming years. These more than 2,500 establishments will represent twice the number of restaurants Telepizza maintains today and its sales in will also double, up to 1,100 million euros per year. The company's presence will also be expanded to reach 37 countries.

Among the objectives of this operation, which considers that Telepizza will become the Master Franchisee of Pizza Hut of the world by number of establishments, it is collected to reach a gross operating profit (Ebitda) for Telepizza of 100 million euros for 2021. Telepizza obtained a Net profit of twelve million euros in the first nine months of the year, which is 44% less due to the extraordinary costs and the fiscal impact of the operation with Pizza Hut, while the adjusted net profit grew by 1.7%, reaching 22 million euros.

The restoration chain billed 262 million euros, which is 2.2% less compared to the same period of the previous year, due to the changes in the distribution of the park of own stores versus franchisees, while the sales in its store network reached the 473 million euros, which represents a growth of 15.2%.

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