A local Tim Horton in New York. Spencer Platt / Getty Images / AFP
RTVE.es / AGENCIES
Burger King Worldwide, the second largest chain of fast food restaurants in USA. , has reached an agreement to acquire the Canadian coffee chain Tim Hortons by more than 11,400 million dollars (8,600 million euros).
and form larger third sector company worldwide with an estimated 23,000 million dollars (17.425 million euros) and 18,000 restaurants in more than a hundred countries, although overall turnover each of the brands will be managed independently .
Following this purchase the new company will locate its corporate domicile in Canada , which substantially will lower tax payments, as in the United States, Burger King is subject to a tax rate of 35% while in Canada the figure is reduced to 15%.
But, Burger King announced that it will keep its headquarters in Oakville (Miami) .
According to the agreed terms, which have received the unanimous support of the Boards of Directors of both companies , Tim Hortons shareholders receive C $ 65.50 in cash and 0.8025 shares of the new company for each share of the Canadian company in its possession.
So, the supply of 89.32 Canadian dollars accepted to carry the merger represents a premium of 39% from the mean value of the securities of Canadian in the 30 days prior to 22 August and 30% compared with the value of Tim Hortons shares last Friday .
However, as an alternative to the exchange ratio proposed by default, Tim Hortons shareholders can choose the payment of C $ 88.50 in cash for each share of the company held by or receive 3.0879 ordinary shares of the new company.
Burger King president will be president of the new company
According to the agreement, Alex Behring , CEO of Burger King and 3G Capital representative , the main shareholder of the burger chain with 70% stake, will become president and chief executive of the new company.
On the other hand, Marc Caira, president and CEO of Tim Hortons, will be named vice president and director with responsibility for strategy and the overall business of the group, Daniel Schwartz, CEO of Burger King, will exercise the same position in the new company.
The board of directors of the company resulting from the merger will have eight members representing Burger King and three by Tim Hortons.
Furthermore, both companies announced that shares of the new company will trade on the New York Stock Exchange and Toronto .
Investment firm Warren Buffet will bring 3,000 billion
As for the financing of the operation, explained that Burger King has earned credit commitments amounting to 12,500 million (about 9,470 million euros) to meet the payment of the cash portion of the offer.
This amount includes a package of debt financing from JP Morgan and Wells Fargo.
Moreover, Berkshire Hathaway, the investment firm of Warren Buffet, has pledged 3,000 million dollars (2.273 million euros) in the form of preferred equity financing.
Although both companies have stated that “ Berkshire is simply a source of funding and will have no involvement in the management “.
No comments:
Post a Comment