With reference to the regulatory announcement RB 18/2017 dated January 25th, 2017 Management Board of AmRest Holdings SE (“AmRest”) announces the Completion of a Share Purchase Agreement (“SPA”) between AmRest and Top Brands NV on May 16th, 2017.
As a result of the Completion AmRest acquired 100% shares of Pizza Topco France SAS (“Pizza Topco”) and changed the name of Pizza Topco into AmRest Topco France SAS. The purchase price at the day of closing of the transaction amounted to EUR 12.3m (approx. PLN 51.5m).
All the approvals and conditions the Completion was contingent upon in accordance with the SPA have been obtained and fulfilled - among others, the master franchise agreement (the “MFA”) with Pizza Hut Europe Sarl (US Branch) (“PH Europe”) has been signed.
According to the MFA AmRest, as the exclusive master-franchisee, have the right to granting the license to the third parties to operate Pizza Hut Express and Pizza Hut Delivery restaurants (sub-franchise) in France and Monaco, while ensuring a certain share of restaurants operated directly by the Company.
The MFA was granted for initial period of 10 years with an option of further prolongations upon the fulfillment of certain terms and conditions.
In order to facilitate the growth of scale of Pizza Hut business, PH Europe introduced an incentive mechanism reducing certain fees incurred by AmRest under the MFA ("Reduced Fees"), provided that the Company meets certain development obligations specified in the MFA.
Upon entry into force of the MFA AmRest is required to open and operate Pizza Hut Express and Delivery restaurants in accordance with the development schedule setting the minimum number of openings in the subsequent years of the Agreement’s term. If AmRest fails to meet the development obligations, PH Europe will have the right to increase the Reduced Fees and change the terms or terminate the MFA. The Company's intention is to open more than 150 Pizza Hut restaurants in the French market within 5 years.
Art. 17 Sec. 1 of Regulation (EU) No 596/2014 of The European Parliament and of The Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC