Sapphire Foods India Ltd (SFIL) on Tuesday, March 21, announced it will increase its stake in Gamma Island Food Private Limited (GIFPL) from the current 51% to 75%.
Gamma Island Food (GIFPL) operates Pizza Hut and KFC restaurants in the Maldives under franchisee agreements.
SFIL said that its board of directors of Gamma Pizzakraft (Overseas) Pvt Ltd (GPOPL), the wholly-owned subsidiary of SFIL, has approved the subscription of up to 81,914 equity shares of GIFPL for a total consideration of MVR18,800,000.
The company also added, “Pursuant to this proposed acquisition, the equity shareholding of GPOPL in GIFPL will be increased from the existing 51% up to 75%”.
“The proposed acquisition is by way of subscription to the additional equity shares issued by GIFPL to GPOPL, in one or more tranches, pricing of which is based on a chartered accountant report,” SFIL said.
SFIL is one of the largest franchisees of Yum! Brands Inc. in the subcontinent, operating more than 700 KFC, Pizza Hut, and Taco Bell outlets across India, Sri Lanka, and the Maldives.