Sapphire Foods to merge with Devyani International

The strategic consolidation of the two QSR operators will also create “a single unified Yum! India Franchisee for KFC and Pizza Hut

Sapphire Foods, the franchise operator of Yum! Brands’ restaurants, KFC and Pizza Hut, will merge with Devyani International.

The boards of Devyani International Ltd (DIL) and Sapphire Foods India Ltd (SFIL) at their respective meetings approved a scheme of arrangement for the merger of SFIL with and into DIL, marking a strategic consolidation of the two companies.

The strategic consolidation of the two QSR operators will also create “a single unified Yum! India Franchisee for KFC and Pizza Hut.

Devyani International will issue 177 shares for every 100 shares held in Sapphire Foods, the company said. The full integration of the two entities, along with the realisation of the identified synergy benefits, is expected to be completed within 15 to 18 months from the effective date of the merger.

Arctic International, a group company, will acquire around 18.5 per cent of Sapphire Foods’ paid-up equity capital from the existing promoters, with the option to later assign this stake to a mutually agreed financial investor.