Domino’s Pizza Eurasia rejects fresh takeover bid from Indian rival which ‘undervalues’ it
London listed Domino’s Pizza Eurasia has rebuffed a revised takeover offer from Jubilant Food Works on the grounds that the offer “undervalues” the business.
DP Eurasia is the master franchisee for Domino’s Pizza in Turkey, Azerbaijan and Georgia, while Jubilant is the master franchisee for the chain in India.
Jubilant recently increased its stake in DP Eurasia from 49 per cent to 53.5 per cent, which according to the company’s articles of association triggers a mandatory takeover proposal. Jubilant requires a 75 per cent shareholding to delist DP Eurasia.
It initially tried to take the company private at 85p per share – a deal DP Eurasia said fundamentally undervalues the company.
Jubilant has raised its offer again to 95p per share but the firm has rejected that price for the same reason.
The firm said: “The board, having taken advice from its financial advisors, Liberum, has concluded that it is not recommending the revised offer and continues to urge minority shareholders to take no action.”
The bid from Jubilant came just as the DP Eurasia reported a 30 per cent jump like-for-like sales in the 10 months to October, as the group was bolstered by the opening of 41 new stores in Turkey.
The firm had been criticised for continuing to operate in the country long after all other major brands pulled out following Russia’s invasion of Ukraine.