Private equity firm Everstone Capital is considering selling its stake worth $314 million in Restaurant Brands Asia Ltd, the master franchisee of Burger King in India and Indonesia, according to two sources.
The Singapore-based company is negotiating with an advisor to explore the transaction, as per the sources privy to the matter.According to Refinitiv data, Everstone Capital owns a 40.9 percent stake in Restaurant Brands through its investment vehicle QSR Asia Pte Ltd. Based on Friday's pricing of Rs 129, Restaurant Brands Asia had a market cap of $768 million.
Its stock has risen by 49 percent since a record low in mid-May.The prospective sale coincides with a period when consumer spending is reviving following the relaxation of coronavirus restrictions in India and Indonesia, which has helped lift their second-quarter economic growth to the strongest pace in a year.
In April-June, India's GDP expanded 13.5 percent year on year, while Indonesia's grew 5.44 percent.
Restaurant Brands Asia, originally Burger King India Ltd, was incorporated in 2013 as a result of a collaboration between Everstone and Burger King Worldwide Inc to expand the fast-food chain's footprint in India.
Everstone Capital is the private equity arm of Everstone Group, which manages assets worth over $7 billion. The private equity firm focuses on the mid-market and invests in Indian and Southeast Asian firms.