Mubadala withdraws offer to acquire Burger King brand in Brazil, shares fall By Reuters


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SAO PAULO, Sept 23 (Reuters) – Brazil’s Zamp SA, which owns the Burger King brand in the South American country, said on Friday that Abu Dhabi state investor Mubadala has withdrawn its offer to buy a stake that would have given it the control of the company.

Mubadala had last week offered 8.31 reais ($1.61) per share to buy a 45.15% stake in Zamp, compared to an original offer of 7.55 reais per share in early August.

The Abu Dhabi investor said in a letter to Zamp that it had withdrawn after receiving no confirmation on whether the transaction would result in the termination of Zamp’s franchise and brand license agreements.

The withdrawal came a day after Restaurant Brands International Inc, the master franchisor of Popeyes and Burger King, said it could not issue a waiver requested by Mubadala for the transaction to go ahead.

Zamp shares fell 6.5% to 6.80 reais after Mubadala’s withdrawal, adding to a drop of more than 8% from the previous session.

Analysts at Santander (BME:) said Mubadala’s withdrawal could create a glut in Zamp shares, as the Abu Dhabi firm could now sell its current 4.95% stake in the Brazilian company.

“If Mubadala decides to quickly sell his current Zamp shares, the impact on the stock could be significant,” they said.

On the other hand, analysts at Goldman Sachs (NYSE:) see a further pullback as a buying opportunity. They note that recent macroeconomic data could lead to a better-than-expected environment for staple consumption in Brazil, which could translate into additional short-term demand for the burger.

(1 dollar = 5.1670 reais)

(Reporting by Gabriel Araujo, edited in Spanish by Aida Peláez-Fernández)

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