Promoter entity QSR Asia Pte Ltd, the investment vehicle of Singapore-based Everstone Capital Advisors, has made a significant move in the restaurant industry by selling a 25.4% stake in Restaurant Brands Asia Ltd. This sale, conducted through a block deal on the stock exchanges, amounted to a substantial Rs 1,494 crore.
Before this transaction, as of June, QSR Asia held a substantial 40.8% stake in the restaurant chain operator. However, after the sale, its stake has been reduced to 15.4% in Restaurant Brands Asia. The buyers of this significant stake have not been officially disclosed at the time of this report.
Recent reports in the industry had hinted that Everstone Capital was contemplating selling its entire stake in Restaurant Brands Asia Ltd. This company serves as the master franchisee of Burger King in India and Indonesia. Furthermore, it was reported that Everstone was in discussions with Jubilant Foodworks, as well as a consortium of private equity firms, namely Advent International and General Atlantic.
The sale of this substantial stake likely attracted strong and prominent buyers, as the stock rebounded significantly from its daily low of Rs 127.20 to reach a 52-week high of Rs 137.70. As of the time of writing this report, the stock was trading 6.3% higher at Rs 128 on the National Stock Exchange.
This transaction resulted in a remarkable surge in trading volumes on the counter. More than 57 million shares changed hands on the NSE, significantly surpassing the six-month average trading volume of 1.9 million shares.
Restaurant Brands Asia Ltd. has been performing well in the stock market, slightly outperforming the benchmark Nifty50. In 2023, the company's shares have gained nearly 15%, while the benchmark has returned a little over 11% in the same period.
Regarding its financial performance, for the quarter ended June, Restaurant Brands Asia reported a loss of Rs 22.2 crore. This is compared to a loss of Rs 22.8 crore in the corresponding period of the previous year. Despite the loss, the company achieved significant growth in revenue from operations, with an increase of more than 25% year-on-year, reaching Rs 422 crore.
The sale of this stake and the subsequent shift in ownership may signify strategic changes and potential new directions for Restaurant Brands Asia Ltd. The involvement of marquee investors like Goldman Sachs, Nomura, Quant MF, Societe Generale, Tata MF, Citigroup, Avendus, and others further adds intrigue to the situation. As this story unfolds, it will be interesting to observe the impact of this sale on the company's operations and its future trajectory in the competitive restaurant industry.
