Overview
- The companies confirmed an all-share swap at 177 Devyani shares for every 100 Sapphire shares with no cash consideration, with DIL group firm Arctic International set to acquire about 18.5% of Sapphire promoter equity subject to an assignment option.
- Yum! Brands has approved the consolidation, and the firms expect regulatory clearances to take roughly 12–15 months before the merger becomes effective.
- Executives project a combined annualised turnover of around Rs 8,000 crore and more than 3,000 stores, with revenues likely to exceed USD 1 billion when the deal closes.
- Under the proposed operating model, the merged company will run Pizza Hut marketing, innovation, technology and supply chain, while for KFC it will assume technology and supply chain as Yum! retains marketing and innovation.
- Brokerages cite synergy and turnaround potential as management focuses on a Pizza Hut recovery, faster delivery and product innovation, a calibrated KFC rollout, and a common technology roadmap with a global partner.