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Devyani International, Sapphire Foods Approve Merger to Create Unified KFC–Pizza Hut Franchisee
The boards of both companies have approved the merger of Sapphire Foods India Limited and Devyani International Limited. This merger will create a single, unified franchisee for KFC and Pizza Hut in India. A share swap will result in 177 Devyani shares for every 100 Sapphire Foods shares.
Sapphire Foods India Limited and Devyani International Limited, two of the biggest quick service restaurant (QSR) chains in the country, are all set to merge. This acquisition will help form a common franchisee of KFC as well as Pizza Hut in the country.
The merger plan has been approved by the boards of both Devyani International and Sapphire Foods. In the merger proposal, the Sapphire Foods Company will be merged with the Devyani International Company. The purpose of the merger is to unite and strengthen the operations of both companies. As per the merger plan, 177 shares of Devyani International will be exchanged for 100 shares of Sapphire Foods.
This acquisition has not been finalized. It requires approval from the stock exchange, Competition Commission of India, National Company Law Tribunal, shareholders, and creditors. The company estimates the entire process could take 12 to 15 months.
