Restaurant Brands raises $94m for Hawaiian business in fully subscribed share offer

The company's shares are set to resume trading today after being placed in a trading halt on November 18.

Tina Morrison
Mon, 21 Nov 2016

Restaurant Brands NZ successfully raised $94 million through a sale of shares to investors, helping fund its planned purchase of Pacific Island Restaurants, the largest fast-food operator in Hawaii with 82 Taco Bell and Pizza Hut stores.

The Auckland-based company raised $52 million from institutions and $42 million from retail investors through the offer of one new share at $4.70 apiece for every 5.15 shares already owned, it said in a statement. As the offer was fully subscribed, no new shares were issued under the underwriting agreement, it said.

The clearing price under the retail bookbuild was $4.90 per new share, representing a premium of 20c over the application price, which means eligible retail shareholders who elected not to take up all or part of their entitlement and ineligible retail shareholders will receive 20c for each new share not taken up by them, the company said.

The company's shares are set to resume trading today after being placed in a trading halt on November 18. The shares last changed hands at $5.09 on November 17, and have gained 17 percent this year. The new shares are expected to be issued on November 23, and start trading on November 24.

Restaurant Brands, which runs the KFC, Pizza Hut, Starbucks Coffee and Carl's Jr food chains in New Zealand, is expanding into new markets to spread its risk and drive future earnings growth. In April, it bought the biggest KFC franchisee in New South Wales, Australia, and it expects to complete the $US105 million purchase of Pacific Island Restaurants by late December, with the remaining funds coming from $US42 million of debt.

(BusinessDesk)

Tina Morrison
Mon, 21 Nov 2016

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Restaurant Brands raises $94m for Hawaiian business in fully subscribed share offer