Burger King stocks to return to NYSE
2012-04-04 12:28:07
Burger King on Tuesday announced the sale of a 29 per cent stake in the fast food chain and its upcoming return to the New York Stock Exchange, two years after it was acquired by an investment firm.
The announcement came one day after Burger King, which has long run a distant second to global hamburger giant McDonald's, said it would overhaul its menu to entice new customers.
The group said in a statement that its principal shareholder, investment firm 3G Capital, had reached an agreement to sell a 29 per cent stake to Britain-based Justice Holdings Limited for US$1.4 billion in cash.
The transaction will allow 3G Capital to pocket some profits as the deal will value Burger King at US$4.8 billion, more than the US$4 billion it paid in October 2010.
The goal is to merge Justice Holdings and Burger King, rename the new entity Burger King Worldwide, move its headquarters from Florida to Delaware, and relist the company on the New York Stock Exchange.
Under the deal, shares in Justice Holdings will no longer be traded in London.
The parties hope to complete the deal by early July.
"Burger King Worldwide's long-term strategy and its entire senior management team will remain unchanged," chief executive officer Bernardo Hees said in the statement.
"In partnership with our new public shareholders, we will continue to focus on creating profitable growth for our franchise system, while delivering best-in-class food and service for our guests."