Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


BurgerFuel gets $5.9M injection from new US investor

BurgerFuel gets $5.9 mln injection from new US investor to fund global expansion

By Paul McBeth

Jan. 14 (BusinessDesk) - Burger Fuel Worldwide, the NZAX-listed fast food chain franchisor, will raise $5.9 million from a new US investor, Franchise Brands, to help fund its global growth aspirations, including plans to reach into the world’s biggest economy.

Milford, Connecticut-based Franchise Brands will buy a 10 percent stake at $1.35 apiece with an option to lift its holding to 50 percent over eight years, and will support the New Zealand firm’s growth plans, including in the US where BurgerFuel plans to open restaurants, the company said in a statement.

The initial stake will be made up of a $5.9 million placement of new shares, and the purchase of $2.16 million of shares from controlling shareholder Mason Roberts Holdings. Once it’s completed, BurgerFuel will have cash reserves of between $9 million and $10 million and no debt, it said.

Franchise Brands was founded in 2005 to invest in small and mid-sized companies seeking to expand their businesses, and is backed by the founders of the Subway restaurant chain, Fred DeLuca and Peter Buck. Its investments include Mama DeLuca’s Pizza, Personal Training Institute, HomeVestors and Taco Del Mar.

The deal was at a 10 percent discount to the $1.50 price the stock was trading at before the announcement, and the shares have since gained 11 percent to $1.66. That values the company at $91.8 million. The shares were trading at the $1.35 trading price when discussions started in April last year.

“This gives us the opportunity to turbo charge our business by going into the US and other countries, alongside the largest franchise company in the world,” chief executive Josef Roberts said. “BurgerFuel will retain control over its unique brand and operating style and we will remain a publicly listed New Zealand company.”

In December, the company said it was scaling up the next phase of its global development and would spending financial year 2014 investing in latching on to those opportunities.

In recent years Burger Fuel has increased its exposure to the Middle East by signing master licensing agreements, which earns the company up-front territory fees and on-going royalties based on store turnover.

The deal needs shareholder approval, and the company said it would set a date for an extraordinary general meeting shortly.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news