Burger King India may get controlling stake in BK Indonesia

Burger King India is in talks to acquire controlling stake in PT Sari Burger Indonesia that operates Burger King chain of restaurants in Indonesia.

According to the burger chain PT Sari Burger Indonesia (BK Indonesia) can be a good fit given the company's experience in managing and operating the Burger King brand in India.

As per BK, they see high growth potential in the Indonesian market and believe that it can be the right partner to drive the Burger King brand in Indonesia though its next phase of growth.

The company has entered into a non-binding understanding with F&B Asia Venture (Singapore). F&B Asia through its wholly owned subsidiary currently holds an indirect equity interest of 65.79% in BK Indonesia. F&B Asia is a member of the 'promoter and promoter group' of BK Indonesia.

Burger King India, in response to an invitation for a non-binding offer from F&B Asia, submitted a non-binding indicative proposal for acquisition of controlling stake by way of a combination of primary and secondary transaction (i.e. up to 85% in BK Indonesia directly or indirectly by way of a secondary purchase and a further primary investment of up to $40 million), at a pre money enterprise value of BK Indonesia at $183 million on a cash free and debt free basis. The proposed transaction is subject to finalization of the structure, terms of acquisition, approval of the board and shareholders of the company.

It also announced that the proposal, on a non-binding basis, has been accepted by F&B Asia on Friday. Accordingly, the parties are subject to an exclusivity period of 90 days to explore and negotiate the proposed transaction.

Burger King India entered India in November 2014 and set the benchmark of opening 200 outlets in just 5 years.