Key Points of Coca-Cola India Acquires Stake in Hashtag Loyalty:
- Coca-Cola India Private Limited has acquired a 15% stake in Hashtag Loyalty Private Limited, an associate company of Jubilant FoodWorks Limited (JFL), for a sum of Rs 104.68 crore.
- The deal resulted in JFL’s stake in Hashtag decreasing from 35% to 29.75% on a fully diluted basis.
- JFL is the sole master franchisee for the development and operation of the Domino’s Pizza brand in Nepal, Bangladesh, Sri Lanka, and India.
- JFL holds the franchise rights for Popeyes in the Indian market and has opened four new stores, bringing the total number of stores in Bengaluru to 12.
- JFL reported a 39.66% drop in its consolidated net profit at Rs 80.36 crore for the third quarter that ended on December 31, 2022, compared to the same period in the previous fiscal year.
- The revenue from operations in Q3 FY23 rose by 10% to Rs 1,331.81 crore compared to the corresponding period last year.
- JFL entered into a shareholders agreement with Hashtag, New Investor, and other existing investors of Hashtag, and stated that the transaction is not a related party transaction and there were no adverse changes in the rights granted to the company.
Details of Coca-Cola India Acquires 15% Stake in Hashtag Loyalty:
Coca-Cola India Private Limited has acquired a 15% stake in Hashtag Loyalty Private Limited, an associate company of Domino’s Pizza maker Jubilant FoodWorks Limited (JFL). The deal was made for a sum of Rs 104.68 crore, resulting in JFL’s stake in Hashtag decreasing from 35% to 29.75% on a fully diluted basis. Hashtag raised the capital at a pre-money valuation of Rs 104.68 crore, as per an exchange filing.
JFL is the sole master franchisee for the development and operation of the Domino’s Pizza brand in Nepal, Bangladesh, Sri Lanka, and India. The firm also holds franchise rights for Popeyes, the multinational chain of fried chicken fast-food restaurants, in the Indian market. The company has opened four new stores, bringing the total number of stores in Bengaluru to 12.
JFL reported a 39.66% drop in its consolidated net profit at Rs 80.36 crore for the third quarter that ended on December 31, 2022. It had a consolidated net profit of Rs 133.19 crore in the same quarter of the previous fiscal year. The revenue from operations in Q3 FY23 rose by 10% to Rs 1,331.81 crore compared to Rs 1,210.77 crore in the corresponding period last year. JFL’s total expenses were at Rs 1,229.79 crore, up 18.22% in Q3 FY23.
The company has entered into a shareholders agreement with Hashtag, New Investor, and other existing investors of Hashtag. It stated that there were no adverse changes in the rights granted to the company, as stated in the stock exchange disclosure on October 27, 2021, at the time of acquiring the initial stake. The transaction is not a related party transaction, the company added.
About Coca-Cola India:
The Coca-Cola Company began its operations in India in 1950. However, due to regulations and legislation imposed by the Government of India that limited the dilution of equity of multinational corporations, the company withdrew from the country in 1977 as a form of protest.
For More of the Latest News Click Here
