Yum Restaurants India is likely to divest its entire 4.4% stake in Devyani International, the company that operates the KFC and Pizza Hut chains in India.
The transaction will be executed through block deals, with Citigroup Global Markets India acting as the sole book-running lead manager.
The floor price for the shares has been set at Rs153.5 ($1.85) each, a 7.45% discount on the present market price at the Bombay Stock Exchange.
The sale price is expected to reach Rs8.15bn.
As of 31 December 2023, Yum Restaurants India owned 50 million shares in Devyani International.
The company acquired a 4.41% stake in September 2021 and has since maintained its investment level.
In addition to Yum Restaurants India, Sabre Investment Consultants and Dunearn Investments (Mauritius) hold 1.01% and 2.94% stakes respectively in Devyani International.
As Devyani's consolidated profit dropped by 87% to Rs96m for the quarter ending December 2023, the company's revenue saw a year-on-year increase of 7% to Rs8.43bn.
In December 2023, Devyani International Limited (DIL) signed an agreement to acquire a stake in Restaurants Development Co (RD) for $129m.
RD operated a chain of 274 KFC restaurants across Thailand and employed 4,500 people. DIL entered the deal through its subsidiary Devyani International DMCC, Dubai.
The deal marks Devyani International’s entry into Thailand’s quick service restaurants and limited service restaurants market.
