Burger King strikes $1.4-bn deal to go public again on NYSE
04 Apr 2012
Burger King, the world's second largest hamburger chain, yesterday said that it will go public, less than two years after it agreed to be taken private by buyout firm 3G Capital Management.
Burger King, which is the midst of overhauling its menu and stores, will sell a 29 per cent stake in itself for $1.4 billion in cash to London-based investment vehicle Justice Holdings Ltd, valuing the 58-year old burger chain at $4.8 billion.
Backed by Brazilian billionaire Jorge Paulo Lemann, New York-based 3G Capital, which had acquired Burger Kind in September 2010 for $4 billion, including debt, will keep the remaining 71 per cent.
Once the sale is complete, Justice Holdings' shares will suspend trading on London Stock Exchange, and shares in Burger King will then be named Burger King Worldwide Inc and floated on the New York Stock Exchange (NYSE).
Justice Holdings completed its initial public offering just 14 months ago with the aim of investing in a company. As part of the deal, Justice Holdings two co-founders Martin Franklin and Alan Parker will join Burger King's board when the deal closes.
Under the deal, Burger King will merge with Justice Holdings, rename the fast food chain to Burger King Worldwide, shift its headquarters from Florida to Delaware, and relist the company on the NYSE.
