Domino's Pizza (DP) Eurasia has rejected a revised takeover proposal from Jubilant Foodworks Netherlands (JFN) on the grounds that the offer does not reflect the true value of the business.

DP Eurasia is the master franchisee of the Domino's Pizza brand in Georgia, Turkiye and Azerbaijan.

JFN is a wholly owned subsidiary of Jubilant FoodWorks (JFW), an India-based foodservice company.

JFN holds a 54.67% stake in the issued and outstanding share capital of DP Eurasia.

In its stock exchange filing, JFW stated: “Pursuant to the mandatory bid provisions contained in Article 30 of DP Eurasia’s articles of association, JFN through the Offer proposes to acquire, the remaining (up to 45.33%) of issued and outstanding ordinary share capital of DP Eurasia not already held by JFN.”

JFN’s initial offer dated 28 November 2023, was priced at 85p per DP Eurasia share. This has now been increased to 95p per share.

JFN plans to acquire the remaining 45.33% stake for up to €73.4m ($80.52m).

DP Eurasia stated in its stock exchange filing: “The non-conflicted members of the board of the Company have determined that it is significantly below what they consider to be the fair value of the DP Eurasia business and its prospects, particularly considering its continued strong performance.

“As a result, the Board, having taken advice from its financial advisors, Liberum, has concluded that it is not recommending the Revised Offer and continues to urge minority shareholders to take no action.”

The board seeks to continue negotiations with Jubilant to secure a fair offer price for DP Eurasia that aligns with their recommendation.

DP Eurasia has 678 stores across Turkiye, ten in Azerbaijan and six in Georgia.

It also operates a coffee brand, COFFY, with 67 stores of which 78% are franchised.