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Business deals

Everstone to review exit plan for Indonesian food portfolios

PE firm hires Rothschild regarding sale of Domino's Pizza and Burger King franchises

Domino's Pizza entered Indonesia in 2008 and the company now has over 120 stores in eight cities including Jakarta.   © Reuters

SINGAPORE -- India and Southeast Asia-focused private equity company Everstone Capital is said to have hired Rothschild to review its plan to exit two Indonesian food and beverage portfolio investments, Dom Pizza Indonesia and Sari Burger Indonesia, two persons familiar with the development told DealStreetAsia.

DPI is the master franchise owner of Domino's Pizza in Indonesia, while SBI is the master franchise owner of fast-food chain Burger King.

In October 2019, DealStreetAsia had reported on the PE firm's plan to exit SBI, in which it invested in 2014. 

Everstone is likely to sell the two businesses together and look for a potential buyer accordingly, the persons added. While the official stake sale process for Burger King and Domino's Pizza is yet to begin, informal discussions have been going on with various parties for a few months. 

An email sent to Everstone seeking comment did not elicit any response.

Everstone is understood to be holding around a 51% stake each in DPI and SBI, which it acquired from local company Mitra Adiperkasa for an undisclosed amount in mid-2014, per media reports. Mitra Adiperkasa, which previously owned 100% stakes in both companies, reduced its ownership to 49% each in DPI and SBI at that time.

Everstone's investment in DPI was routed through a special purpose vehicle QSR Indopizza, while the investment in SBI was conducted by QSR Indoburger.

However, it is understood that Mitra Adiperkasa currently holds 33.52% each in DPI and SBI, according to the Indonesian company financial report in September 2019. The change in ownership happened due to DPI's capital increase in September 2016, wherein new shares were subscribed by QSR Indopizza. Subsequently, in June and November 2017, SBI increased its capital and issued new shares, which were subscribed by QSR Indoburger.

By the end of September 2019, the equity investment value of Mitra Adiperkasa in DPI stood at around 27.2 billion rupiah ($1.96 million), while in SBI it was 121.9 billion rupiah, according to the company's financial report.

Domino's Pizza entered Indonesia in 2008 and now has over 120 stores in eight cities -- Jakarta, Bogor, Depok, Tangerang, Bekasi, Serang, Bandung and Bali Island. Burger King entered the country in 2007 it now has more than 100 stores which serve over 20 million customers across the archipelago.

DealStreetAsia is a financial news site based in Singapore which focuses on corporate investment activity in Southeast Asia and India. Nikkei recently acquired a majority stake in the company. 

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