Public offering of shares could reach R$938.6m

08/02/2022

Mubadala wants to increase stake in Burger King chain in Brazil to 50.1% — Foto: Divulgação

The Arab investment fund Mubadala Capital has made a proposal to buy the control of Burger King in Brazil, a company currently called Zamp, in a deal that could reach R$938.6 million. Through a voluntary public offering of shares, Mubadala wants to increase its stake in the chain to 50.1% from 4.95% by paying R$7.55 per share. The amount represents a premium of 21.6% over the closing price last Friday, and 31% over the average share price of the last 30 days.

As Valor previously reported, the fund had already been analyzing an offer for the company within the strategy of moving forward on assets with growth potential, but which have lost value on the stock exchange since the pandemic crisis. In 12 months, the stock had declined 49% until last Friday. In the offering, the proposal is for payment in cash on the settlement date, according to a letter from a Mubadala subsidiary sent to the chain, which offers details on the conditions.

On Monday, after the disclosure of the interest to the market, the stock closed the day up 18.81% at R$7.39, a price close to the level offered by investors. The chain’s board of directors – composed mostly of independent members – is expected to release within 15 days a preliminary opinion on the offer, but the initial signals from shareholders are negative.

*By Adriana Mattos, Luiza Ferraz, Maria Luíza Filgueiras — São Paulo

Source: Valor International