Sapphire Foods, Devyani Internationall to merge

Sapphire Foods India (SFIL) will merge with Devyani International Ltd. (DIL) through a share-swap mechanism,  creating a single unified yum! India Franchisee for KFC & Pizza Hut. Upon completion, the transaction will result in DIL becoming one of the largest quick-service restaurant (QSR) operators in India, the company said in a statement.

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“The consolidation of Devyani International Limited and Sapphire Foods India Limited marks a significant milestone and a decisive leap forward in our growth journey, resulting in DIL holding franchise rights across the entire Indian market for KFC and Pizza Hut brands. The merger also adds a strong international presence in Sri Lanka, which complements our existing overseas operations,” Ravi Jaipuria, Non-Executive Chairman of Devyani International Ltd., said.

Arctic International, a group company, to acquire approximately 18.5% of SFIL’s paid-up equity share capital from the existing SFIL promoters, with an option to assign to a mutually agreed financial investor.

Yum! Brands has granted its approval for the consolidation of Devyani International Limited and Sapphire Foods India Limited.

DIL will pay a one-time charge to Yum! India towards merger approval and the licence fee for the additional territory. DIL is expecting an overall synergy of INR 210 to 225 croreson an annual basis from 2nd full year operations of integrated company.

The full integration of the two entities, along with the realisation of the identified synergy benefits, is expected to be completed within 15 to 18 months from the effective date of the merger.

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