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Mubadala-backed Brazilian restaurant chain operator Zamp agreed to buy the rights to operate the Starbucks brand and some of its stores in Brazil after entering into a USD 22.7 mn sale and purchase agreement with SouthRock, which is under bankruptcy protection, according to a bourse filing (pdf). The exact number of stores it will acquire has not been finalized, according to the filing, with the pricing expected to change.
The details: The sale will take place through a “competitive bidding process” in line with Zamp’s bankruptcy protection proceedings that allow Zamp to match potentially higher bids.
What’s next? Brazil’s antitrust watchdog CADE, as well as the court overseeing SouthRock’s bankruptcy, will need to give the transaction its stamp of approval. The company is also seeking a final agreement with Starbucks over the operation of its stores and brand in the country.
Market reax: Shares of Zamp jumped as much as 19.4% before closing up some 10.2%.
Background: The company has been in talks with Starbucks to operate its brand since February. It currently operates Burger King and Popeyes restaurants in the country.
REMEMBER- Mubadala is bullish on Brazil: Mubadala Capital raised its stake in Zamp to 58% after investing some USD 200 mn in Zamp alongside Affinity Partners, and said it wouldn’t rule out further investments in the company. The asset manager is reportedly mulling ownership in a new Brazilian football league.
ADVISORS- Rothschild & Co served as the exclusive financial advisor, while BMA Advogados acted as Zamp’s legal advisor.
OTHER M&A NEWS-
ADIA to buy into Emerson and Blackstone JV: A subsidiary of the Abu Dhabi Investment Authority (ADIA) is investing alongside Blackstone and Singapore state fund GIC in asset manager Emerson’s USD 3.5 bn, 40% stake in its Copeland joint venture, according to a statement.
Background:ADIA and GIC are both limited partners of Blackstone’s funds, and are together also several acquisitions, including a bid for a 75% majority stake in Indian restaurant company Haldiram’s snacks business, and a bid for DB Schenker’s logistics unit.
GFH Financial Group to acquire Ithmaar Holding: Bahrain-based Islamic investment bank GFH Financial Group is set to acquire Bahraini investment firm Ithmaar Holding ’s financing and investment portfolios, after Ithmaar’s shareholders approved the proposed transaction in an extraordinary general meeting last week, according to a DFM disclosure (pdf). The exact structure and value of the transaction were not disclosed and details on the transaction’s impact on GFH’s financial position will be disclosed at a later date.
What’s next? The DFM-listed companies are continuing discussions for the acquisition, with Ithmaar’s board of directors tasked with negotiating and agreeing on the proposed transaction’s final structure, terms, and documents, the disclosure reads.
Background: GFH operates GFH Partners, a real estate asset management arm based in DIFC.
