ARISAIG PARTNERS TO BUY 3.

5% STAKE IN WESTLIFE DEVELOPMENT

PE deal values McDonald’s

franchisee at ~5,187 crore
Funds generated to be used for investments in expansion of business
BS REPORTER
Mumbai, 23 July SPREADING WINGS
ACROSS FIRMS
S
ingapore-based invest-
ment firm Arisaig
Partners, which bets on Arisaig Partners’ holdings
consumer-driven companies, Company Stake (%)
would pick up a 3.5 per cent Future Ventures 9.51
stake in McDonald's fran-
Future Retail 9.34
chisee, Westlife Development,
for ~180 crore, it was Britannia Ind 8.92
announced on Tuesday. Trent 8.86
Westlife subsidiary Marico 5.48 A small chunk of the burger
Hardcastle Restaurants runs JubilantFoodWorks 5.39 | 3.47% Stake in Westlife Development that Singapore-
the operations of McDonald's Colgate-Palmolive 3.53 based Arisaig Partners will pick up
in the west and south of India.
United Breweries 3.32 | ~180 crore The cost to Arisaig Partners
Operations in the north and
east are run by another fran- Shoppers Stop 3.02 | ~333.05 Value of each share
chisee named Connaught Godrej Consumer 2.73
| ~5, 187 The total value of Westlife Development as per
Plaza Restaurants. Nestle India 1.90 the deal
Arisaig would pick up the As on June 30, 2013

stake in Westlife via a prefer-

ential allotment of 5.4 million
shares, which would be made
available to it at ~333.1 a piece.
The deal values the firm at
~5,187 crore.
Following the preferential
allotment, the Jatias, promot-
ers of Westlife, would hold 64.1
per cent in the company.
“The funds raised through
the preferential allotment
would be used to invest in the
growth of our business, aggres-
sively increase our retail foot-
Compiled by BS Research Bureau
print, fortify our presence in
the existing markets and
enable us to enter newer mar-
kets,” said Amit Jatia, vice-
chairman, Westlife
Development.
Westlife has 166 restaurants
at the moment, with plans to
double this number in the next
two years.
Westlife would join a list of
marquee names such as
Trent, United Breweries,
Source: BSE | 166 Total no of restaurants Westlife Development runs
Future Retail, Marico, Godrej
Consumer and Jubilant
FoodWorks, master franchisee
of Domino’s in India,
Britannia and Shopper's Stop,
who are already on Arisaig's
investee company list. Some
Indian subsidiaries of multi-
national companies who are
on Arisaig's rolls include
Nestle, GlaxoSmithKline
Consumer and Colgate-
Palmolive.
Arisaig's move comes at a
time when Westlife has just
received approval from the high
court here for consolidation of
its subsidiaries with it. Initiated
last year, the approval would
make Hardcastle a direct sub-
sidiary of it.
The stock of Westlife was up
two per cent on the Bombay
Stock Exchange on Tuesday, to
close trade at ~328.5. This was
also its day’s high.