With reference to the regulatory announcement RB 25/2018 dated May 24th, 2018 AmRest Holdings SE (“AmRest”, the “Company”) informs about signing on July 26th, 2018 of the Framework Agreement between AmRest Opco SAS („AmRest Opco”), AmRest Leasing SAS, AmRest Estate SAS (jointly: „Buyer”) and KFC France SAS (“KFC France”) and NOVO BL (jointly “Seller”). Under the terms of the Framework Agreement (i) Buyer will acquire 15 equity restaurants run by KFC France in the French market, and (ii) AmRest Opco and KFC France will sign the standard KFC International Franchise Agreement for each restaurant.
The purchase price is expected at EUR 33.3 million. Final purchase price will be determined as at the day of the transaction closing.
Estimated revenues of the restaurants in 2017 amounted to EUR 40 million.
It is the intention of the parties that the closing of the transaction, including transfer of ownership of KFC business and payment of the purchase price, shall occur till end of the year 2018 (the “Completion”). The Completion is contingent upon some additional conditions, such as concluding additional agreements ensuring restaurants proper functioning after Completion, consultation with works council and health and safety committee of KFC France and lack of the material adverse change (“MAC”).
Simultaneously, the Company informs about signing on July 26th, 2018 of the Development Agreement between AmRest Opco and KFC France setting forth the development plans of the KFC brand in France. According to the agreement AmRest intends to open in the French market about 150 KFC restaurants by end of 2023.
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