KFC and Pizza Hut outlet operator Sapphire Foods India Ltd (SPIL) said on Tuesday, February 21, the company is increasing its stake in Gamma Island Food Private Ltd (GIFPL) to 75 percent from the current 51 percent.
GIFPL is a limited liability company, incorporated in the Republic of Maldives. The principal objective of GIFPL is to operate Pizza Hut and KFC restaurants in the Maldives under franchisee agreements. During FY 2021-22, the total revenue of GIFPL was 26,374,562 MVR (Maldivian Rufiyaa).
"The Board of Directors of Gamma Pizzakraft (Overseas) Pvt Ltd (GPOPL), a wholly-owned subsidiary of SPIL, has considered and approved subscription of up to 81,914 equity shares of GIFPL, subsidiary of GPOPL and step-down subsidiary of the Company, for a total consideration of upto 1.88 crore Maldivian Rufiyaa (Rs 10.15 cr)," the company said.
Further, SPIL said, "Pursuant to this proposed acquisition, the equity shareholding of GPOPL in GIFPL will be increased from the existing 51% up to 75 percent. The proposed acquisition is by way of subscription to the additional equity shares issued by GFIPL to GPOPL, in one or more tranches, pricing of which is based on a chartered accountant report."
The objective of the proposed acquisition is to principally support GFIPL in its business expansion (opening of new stores) plan in the Maldives and to further consolidate shareholding in GFIPL.
(Edited by : Shoma Bhattacharjee)
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