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Malaysian buyout fund Navis Capital Partners that owns a majority stake in Nirula’s has put the New Delhi-based fast-food chain on the block again and has appointed NM Rothschild to advise it on a possible sale, reported a business daily. But potential suitors say a high asking price may be keeping buyers away.Subscribe to The Hospitality Knowledge & Career E-Mag |www.hospemag.com by Email
Nirula’s managing director Samir Kuckreja, a part-owner of the company, said the firm “had received several takeover proposals” and confirmed the appointment of an investment bank to “manage such queries and explore the proposals.”
“But at this stage, we would like to state that Nirula’s continues to be owned by Navis Capital Partners and me, and the current shareholding pattern is not expected to change in the foreseeable future,” Kuckreja added.
However, a senior executive with a potential suitor said the owners of Nirula’s were expecting Rs 300 crore, which was “quite high”. The executive said Dabur, Indian Hospitality (IHC), Thapar Group and a Dubai-based fund were also sounded out to buy the 75-year-old restaurant chain.
A top Nirula’s executive said the company was still to get any feedback from its bank that the valuation is too high. The executive said Nirula’s was expecting a valuation twice the Rs 300 crore figure.
Nirula’s operation are based on the franchise format. Apart from Delhi and the national capital region, the company has stores in Panipat, Lucknow, Chandigarh and Agra. Its network spans 60 outlets, including dinein restaurants, pastry shops, ice-cream parlours and coffee shops.
Kuckreja said the company’s plans to set up 100 more outlets across India and abroad continue to be on track.
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Source| insidefranchising.net