Jubilant Foods To Buy Remaining 10% Stake In JV With Golden Harvest

Jubilant Food Works on Tuesday said it will acquire the remaining 10 per cent share in its joint venture Jubilant Golden Harvest from Golden Harvest.

After this, Jubilant Food Works (JFL) would have Golden Harvest's 49 per cent stake in the JV, making JGHL, which offers domino's pizza in Bangladesh, a wholly-owned subsidiary, the company said in a regulatory filing.

Jubilant Golden Harvest Ltd (JGHL) is a JV between JFL and Golden Harvest Ltd, a Bangladesh-based business group with diversified interests in various sectors, including food, dairy, commodities trading, international QSR, logistics and real estate development.

As of December 31, 2021, JGHL, a public limited company incorporated in Bangladesh, was operating eight restaurants.

According to JFL, under the share subscription and shareholders' agreement dated March 6, 2018, executed between JFL, JGHL and Golden Harvest, it had exercised the first call option for acquiring a 39 per cent equity stake in JGHL from Golden Harvest on September 30, 2021.

"JFL has now issued a notice to Golden Harvest to exercise its call option for acquiring the remaining 10 per cent equity stake in JGHL from Golden Harvest ("Call Option 2").

"Accordingly, JFL will acquire the complete 49 per cent 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 JFL," it said.

According to JFL, it will be an all-cash consideration and the transaction will be based on a valuation report to be obtained from a chartered accountant/ Independent Accounting Firm.

JFL is a master franchise of brands such as Dominos and Dunkin' Donuts. It also has franchise rights for Popeyes, an American multinational chain of fried chicken fast-food restaurants for markets such as India, Bangladesh, Nepal and Bhutan.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor