Private equity firm Everstone Capital is considering selling its stake worth $314 million in Restaurant Brands Asia Ltd, the master franchisee of Burger King in India and Indonesia, according to two sources cited by news agency Reuters on Friday.
The Singapore-based company is negotiating with an advisor to explore the transaction, as per the Reuters sources privy to the matter.
According to Refinitiv data, Everstone Capital owns a 40.9 percent stake in Restaurant Brands through its investment vehicle QSR Asia Pte Ltd. Based on Friday's pricing of Rs 129, Restaurant Brands Asia had a market cap of $768 million.
Its stock has risen by 49 percent since a record low in mid-May.
The prospective sale coincides with a period when consumer spending is reviving following the relaxation of coronavirus restrictions in India and Indonesia, which has helped lift their second-quarter economic growth to the strongest pace in a year.
In April-June, India's GDP expanded 13.5 percent year on year, while Indonesia's grew 5.44 percent.
Restaurant Brands Asia, originally Burger King India Ltd, was incorporated in 2013 as a result of a collaboration between Everstone and Burger King Worldwide Inc to expand the fast-food chain's footprint in India.
Everstone Capital is the private equity arm of Everstone Group, which manages assets worth over $7 billion. The private equity firm focuses on the mid-market and invests in Indian and Southeast Asian firms.
According to its most recent annual report, Mumbai-based Restaurant Brands Asia now operates 315 outlets in the nation as of the end of March this year.
Based on the annual report, Restaurant Brands Asia is Burger King's exclusive national master franchisee in India and Indonesia, where it also owns and runs 177 units as of end-March.
Restaurant Brands Asia has committed to develop and launch at least 700 restaurants in India by the end of 2026 under the master franchisee agreement, the report stated.
(With inputs from Reuters)
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