Sapphire Foods plans to hike stake in Maldives-based GFIPL

The QSR company on Tuesday (21 February 2023) announced that it will increase its stake in Gamma Island Food (GIFPL) to 75% from the existing 51%.

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 Maldives under franchisee agreements. During FY 2021-22, the total revenue of GIFPL was 26,374,562 Maldivian Rufiyaa (MVR).

In a regulatory filing, Sapphire Foods India said, The board of directors of Gamma Pizzakraft (Overseas) (GPOPL), wholly-owned subsidiary of Sapphire Foods India (SPIL), has considered and approved subscription of upto 81,914 equity shares of Gamma Island Food (GIFPL), subsidiary of GPOPL and step-down subsidiary of SPIL, for a total consideration of upto MVR 18,840,220. Pursuant to this proposed acquisition, the equity share holding of GPOPL in GIFPL will be increased from the existing 51% up to 75%.

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 company added.

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.

The indicative time period for completion of the acquisition is March 2023.

Sapphire Foods India is principally engaged in the franchisee business of KFC, Pizza Hut and Taco Bell branded restaurants.

The company's consolidated net profit declined 23% to Rs 32.7 crore in Q3 FY23 compared with Rs 42.4 crore in Q3 FY22. Revenue from operations rose 17.5% year on year to Rs 596.13 crore during the quarter ended 31 December 2022.

Shares of Sapphire Foods India declined 0.96% to Rs 1,225 on the BSE.

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