Yum Restaurants to Exit Devyani International with Rs 815 Cr Block Deal

Owners and operators of Taco Bell, KFC and Pizza Hut, Yum Restaurants India is planning to exit quick service restaurant giant Devyani International by selling a 4.4 per cent interest in a block sale on Wednesday, shared reports.

According to the reports, with this, Yum Restaurants expects to raise around Rs 815 crore from the deal.

The floor price for the sale has been set at Rs 153.5 per share, which represents an almost 8 per cent reduction to the current pricing.

Devyani International’s shares closed 0.6 per cent higher at Rs 166.20 on the National Stock Exchange.

As of 31 December, Yum Restaurants owned more than 5 crore shares in Devyani International. Yum Restaurants acquired 4.41 per cent of Devyani International in September 2021.

Devyani International’s stock has risen by more than 7 per cent during the last year.

Devyani International, which manages the KFC and Pizza Hut restaurant franchises in India, announced disappointing results for the December quarter, with consolidated earnings falling 87 per cent to Rs 9.6 crore. The company’s sales increased by barely 7 per cent YoY to Rs 843 crore.

Whereas, shares of the QSR operator closed 0.36% higher at Rs 165.85 apiece on Tuesday, as compared with a 0.48% advance in the BSE Sensex.