NEW DELHI: Jubilant FoodWorks Limited on Tuesday informed in an exchange filing that it has issued a notice to exercise its call option for acquiring the remaining 10% equity stake in its joint venture Jubilant Golden Harvest (JGHL) from Golden Harvest.
With this, the company will acquire the complete 49% equity stake of Golden Harvest in JGHL and post the consummation of Call Option 1 and Call Option 2, JGHL shall become a wholly owned subsidiary of Jubilant FoodWorks (JFL).
“Pursuant to the Share Subscription and Shareholders’ Agreement dated March 6, 2018 executed between Jubilant Foodworks Ltd, Jubilant Golden Harvest Limited and Golden Harvest QSR Limited, JFL had informed the stock exchanges of JFL’s exercise of the call option for acquiring 39% equity stake in JGHL from Golden Harvest vide letter dated September 30, 2021,” the company said in the exchange filing.
JFL in September last year had exercised a call option for acquiring 39% equity stake in JGHL from Golden Harvest. Post the acquisition, JFL owned 90% of the total shareholding of JGHL and Golden Harvest owned the remaining 10% of the total shareholding of JGHL.
Jubilant Golden Harvest Ltd (JGHL) is a JV between JFL and Golden Harvest Ltd, a Bangladesh-based diversified business group and has the franchise rights to develop and operate Domino’s Pizza restaurants in Bangladesh. As on December 31, 2021, JGHL has eight restaurants.
The parties will obtain necessary governmental/regulatory approvals, if required, under applicable laws for the transaction, the company said, adding it will be an ‘all-cash consideration’ and the transaction will be based on a valuation report from a chartered accountant/ Independent Accounting Firm.Jubilant FoodWorks saw its stock on Tuesday close at 2,622.40, up 2.67% on Bombay stock exchange (BSE).