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

 

Burger Fuel exploring sale after review questions merits

By Paul McBeth

Feb. 15 (BusinessDesk) - Burger Fuel Worldwide will test the waters for a potential buyer after a review by KPMG questioned the fast-food franchisor's current listing.

The fast-food company, which listed on NZX's junior Alternative Market in 2007, hired the corporate advisory firm to assess options to accelerate the business's growth after a partnership with the founders of the Subway franchise fell through.

As a result of that review, Burger Fuel will focus on its New Zealand growth and the roll-out two new brands it thinks could then be franchised: Winner Winner is a chicken dinner; Shake Out is a quick-service burger concept.

KPMG questioned Burger Fuel's listing, saying the company has a strong balance sheet with no debt and didn't need new capital. KPMG also noted its shares are illiquid and volatile.

Founders Chris Mason and Josef Roberts still control the company, with about 73 percent, leaving the remainder shared among the 2,517 stockholders on the register. The shares last traded at 55 cents, the lowest level since late 2011, valuing the business at $30.3 million.

Burger Fuel's board have expanded KPMG's original mandate to now explore all strategic options for the business.

"KPMG will therefore shortly begin preparation to conduct a formal process seeking expressions of interest regarding a sale, merger, joint venture, international partnership, domestic partnership or alternative proposals that may arise from the process," the company said in a statement.

"The board will keep the market updated with any developments should they occur throughout the on-going strategic review process."




© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax Bill Passes, Drops: “An End To Unnecessary Secondary Tax”

“The changes mean Inland Revenue will more closely monitor the tax paid by wage and salary earners through the year. If it appears the worker is being over taxed, Inland Revenue will suggest a more suitable PAYE tax code tailored to that worker.” More>>

ALSO:

Ethiopian Airline Crash: Boeing 737 Max Aircraft Operations Temporarily Suspended

New Zealand’s Civil Aviation Authority has suspended the operation of Boeing 737 MAX aircraft to or from New Zealand. Currently this affects only one operator, Fiji Airways. There are no other airlines that fly this aircraft type to New Zealand. More>>

ALSO:

Sorting Out DNA: Crime-Busting Software Wins Top Science Prize

Software developed in New Zealand that has contributed to identifying suspects in tens of thousands of criminal cases around the world has won the 2018 Prime Minister’s $500,000 Science Prize. More>>

ALSO:

In The High Court: IRD Wins Tax Avoidance Case

Inland Revenue has won a High Court case against Eric Watson’s Cullen Group over a nearly $52 million tax debt. More>>

ALSO:

Insurers Withdraw From Market: Plea For EQC Rethink

A consumer watchdog wants the government to rethink the Earthquake Commission (EQC) as more people are pushed out of getting property and contents insurance. More>>

ALSO:

Women's Day: New Zealand Rated Third Best In OECD For Working Women

New Zealand has been rated among the top countries in the world for working women. The Women in Work Index rated New Zealand third in the OECD and it was the only country outside Europe to make the top 10. More>>

ALSO: