Pepperoni to bratwurst as Domino’s to raise $165m in German option buyout
Domino’s will raise $165 million through a placement and a share purchase plan to buy out partners in its German business.
Domino's boss Don Meij has revealed a shakeup of its business (Photo: Crikey).
It follows the receipt last month of an option exercise notice from the German business, DPG, requiring the purchase of all the shares in its joint venture with the company.
The placement to institutional investors was expected to raise $150 million while a share purchase plan to retail investors would raise a further $15 million.
Managing director Don Meij said the company was excited about increasing its stake in DPG. He said it had been an objective since entering the German market.
“Germany offers strong, long-term growth prospects for our business,” Meij said.
The price for shares in the placement had not been determined, but there was a floor price of $65.05, which represented a 2 per cent discount. At the floor price, the placement would consist of 2.3 million shares, or 2.7 per cent of existing capital.
Retail shareholders would be able to buy up to $30,000 worth of new shares in the SPP. A price for that would be determined by the institutional placement.
Domino’s used the capital raising to reaffirm its outlook for the year and said the business continued to track in line with expectations.
The Malaysian, Singapore and Cambodian markets were also in line with expectations.
