The Management Board of AmRest Holdings SE (“AmRest”, the “Company”) informs about signing on March 15th, 2017 the Binding Head of Terms (“HoT”) determining the key terms and conditions on, and subject to which, KFC France SAS (“KFC France”) would be willing to proceed with a potential transaction with AmRest whereby (i) KFC would sell and AmRest would buy 42 equity restaurants run by KFC France (“KFC Business”) in the French market, and (ii) KFC and the Company would sign a Development Agreement and Standard KFC International Franchise Agreement for each restaurant (collectively called the “Contemplated Transaction”).
The purchase price for the KFC Business is subject to the results of a due diligence to be carried out by AmRest.
It is the intention of AmRest and KFC France that the final agreements (the agreements required for closing of the Contemplated Transaction) shall be signed no later than April 30th, 2017, and closing of the Contemplated Transaction, including transfer of ownership of KFC Business and payment of the purchase price shall occur no later than June 30th, 2017. If the parties fail to sign the final agreements by August 1st, 2017 the HOT shall terminate immediately, unless otherwise agreed in writing by both parties.
In the opinion of the Management Board of AmRest there is a great potential for growing KFC brand in Western Europe. Acquisition of a number of KFC French restaurants will contribute to strengthening the partnership with Yum! Brands and AmRest’s leadership position of restaurant operator in Europe as well as drive the value creation for AmRest’s shareholders.
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