RB 2/2023 Signing of a new agreement for the sale of KFC business in Russia

AmRest Holdings, SE (“AmRest”, the “Group”) issues the statement of inside information concerning an agreement to sale KFC business in Russia.;In connection with the sale of its KFC stores in Russia (the “Business”) and the Inside Information published on 6 December 2022, with registration number 13/2022, AmRest informs that Unirest LLC (“Unirest”), an affiliate of Yum! Brands Inc. (“Yum! Brands”), has exercised its right of first refusal pursuant to the underlying franchise agreements for itself or for the benefit of a third party, and has appointed Smart Service Nord Ltd. (“Smart Service”) as the purchaser of the Business.

Smart Service is operated by two Russian KFC franchisees, Messrs. Konstantin Kotov and Andrey Oskolkov and, according to public information, is the entity with which Yum! Brands Inc. entered into a sale and purchase agreement to transfer ownership of its Russian KFC restaurants in October of 2022. 

As a consequence of Unirest’s exercise of its right of first refusal, AmRest has terminated the sale and purchase agreement entered into with OOO Almira on December 6, 2022, and signed a new sale and purchase agreement with Smart Service on February 25, 2023, substantially in the same terms and conditions of the agreement between AmRest and OOO Almira.

Therefore, the new sale and purchase agreement is subject to the approval by the anti-trust agency of Russia and to other regulatory approvals which could be applicable in Russia.

As of today, and according to the terms of the sale and purchase agreement, AmRest expects to receive a minimum of 100,000,000 euros from the sale of the Business.

The final terms of this transaction, which are subject to certain external factors, including exchange rate, will be communicated if and when the transaction closes. Nevertheless, AmRest estimates that after recognition of the impairment of the investment in the Russian business in the consolidated financial statements as of June 30, 2022, the completion of the transaction should not require further adjustments

Legal act: 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