Domino's shares surge after report of Bain Capital considering takeover

By Angus Whitley

 

Domino’s Pizza Enterprises Ltd. shares soared after the Australian Financial Review reported Bain Capital is considering buying the fast-food chain in a deal worth as much as A$4 billion ($2.6 billion). 

The stock jumped as much as 23 per cent in Sydney trading after the report. The shares were up 17 per cent at A$18.13 before trading was paused at 11:22 am local time, valuing Domino’s Pizza Enterprises at A$1.7 billion.

 

According to the AFR, US buyout firm Bain has been in talks to acquire all or part of Domino’s Pizza Enterprises, citing people briefed on the plan. It’s not clear how advanced discussions might be, and advisors haven’t formally been appointed, the newspaper said. 

 

  Billionaire Jack Cowin, the largest shareholder of Domino’s Pizza Enterprises, took charge at the company earlier this year to implement a turnaround. He wants to shift away from higher prices and a reliance on food coupons, to lower prices and fewer tokens in order to make menu prices more transparent.