The Restaurant Brands share price has increased by 14.47% today.
Restaurant Brands is a corporate franchisee specialising in food retail chains, and is dual-listed on both the NZX and the ASX. The company operates and owns the franchising rights for KFC, Pizza Hut, Carl’s Jr. and Starbucks stores in New Zealand.
At the time of writing, Restaurant Brands has a market capitalisation of $1.08 billion and the share price is $8.70.
Why did Restaurant Brands’ share price go up today?
Restaurant Brands announced this morning that it has received a proposal for acquisition of up to 75% of its shares.
The $9.45 share offer is higher than the record share price for Restaurant Brands, which is currently $8.70.
Shareholders are responding positively to the proposed partial takeover leading to the share price increase.
Restaurant brands also released their half year results today which showed that its net income for the 28 weeks ended 10 September 2018 was up 7% on the prior period.
What’s next for the Restaurant Brands share price?
If the proposal were to proceed, the deal would need approval from the Overseas Investment Office and Yum! Brands.
If the deal goes ahead, it may be positive news for investors, but if it were to fall though, we could see a short-term, but potentially steep drop in share price.
Regards,
Taylor Kee,
Editor, Money Morning New Zealand