US burger chain Burger King is to return to a stock exchange listing in the US after a two-year gap, after UK investment vehicle Justice Holdings bought a sizeable stake in the company.
London-listed Justice Holdings is to pay $1.4bn to acquire a 29% holding in the restaurant chain from Burger King Worldwide's owner, 3G Capital, a global investment firm which will retain a 71% stake in the fast food peddler. The deal will see the end of Justice's stint as a company listed in London. The shares have been suspended from trading.
"Justice has been extremely disciplined in considering potential operating businesses since its formation in February 2011," commented Lord Myners, the independent Chairman of Justice.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The Burger King transaction offers a number of the key features the board was looking for in a combination: strong cash flows, an experienced and successful management team, significant strategic growth opportunities and a company that would benefit from Justice's public ownership," Lord Myners added.
The board's decision to pull the trigger on the deal was unanimous, Lord Myners revealed.
JH
-
Why now is the right time to invest in biotechThe biotech sector holds huge potential for investors, with strong growth and attractive valuations. Here's the best way to play it.
-
Zoopla: Busiest home buying May since 2021, but property asking prices slideBuyers return to the market after the end of higher stamp duty thresholds and post-Easter lulls, but average sales are £16,000 below asking price
