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Devyani to Merge With Sapphire Foods in All-Stock Deal Creating India’s Largest Yum! Franchisee

The tie-up seeks scale to cut costs after recent margin pressure at both franchisees.

Overview

  • Devyani will issue 177 shares for every 100 Sapphire shares in an all-stock merger reported at about US$934 million.
  • The combined operator would oversee more than 3,000 KFC and Pizza Hut outlets across India and overseas, including Sapphire’s presence in Sri Lanka.
  • Management projects annual synergies of Rs 210–225 crore from the second full year after integration.
  • The scheme sets an appointed date of April 1, 2026 and requires approvals from stock exchanges, the Competition Commission of India, the National Company Law Tribunal and shareholders.
  • As part of the transaction, Arctic International will acquire about 18.5% of Sapphire’s equity, and the Jaipuria family’s promoter stake in the merged Devyani is expected to decline to roughly 47.83%.