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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news