Jubilant Food Works on Tuesday said it will acquire the remaining 10 per cent share in its joint venture Jubilant Golden Harvest from Golden Harvest. After this, Jubilant Food Works (JFL) would have Golden Harvest’s 49 per cent stake in the JV, making JGHL, which offers domino’s pizza in Bangladesh, a wholly-owned subsidiary, the company said in a regulatory filing.
Jubilant Golden Harvest Ltd (JGHL) is a JV between JFL and Golden Harvest Ltd, a Bangladesh-based business group with diversified interests in various sectors, including food, dairy, commodities trading, international QSR, logistics and real estate development.
As of December 31, 2021, JGHL, a public limited company incorporated in Bangladesh, was operating eight restaurants.
According to JFL, under the share subscription and shareholders’ agreement dated March 6, 2018, executed between JFL, JGHL and Golden Harvest, it had exercised the first call option for acquiring a 39 per cent equity stake in JGHL from Golden Harvest on September 30, 2021.
“JFL has now issued a notice to Golden Harvest to exercise its call option for acquiring the remaining 10 per cent equity stake in JGHL from Golden Harvest (“Call Option 2”).
“Accordingly, JFL will acquire the complete 49 per cent equity stake of Golden Harvest in JGHL and post the consummation of Call Option 1 and Call Option 2, JGHL shall become a wholly-owned subsidiary of JFL,” it said.
According to JFL, it will be an “all-cash consideration” and the transaction will be based on a valuation report to be obtained from a chartered accountant/ Independent Accounting Firm.
JFL is a master franchise of brands such as Dominos and Dunkin’ Donuts. It also has franchise rights for Popeyes, an American multinational chain of fried chicken fast-food restaurants for markets such as India, Bangladesh, Nepal and Bhutan.
