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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news