Largest KFC operator raises funds for more buys

KFCFast food operator, Collins Food, has completed the second stage of its retail entitlement offer, which raises the funds for its acquisition of 28 more KFC outlets through a $44.1 million offer of new shares and $69.3 million in debt facilities.

On Friday, Collins Foods announced the institutional component of the entitlement offer raised approximately $25.9 million, with the retail entitlement offer raising approximately $18.3 million.

Australia’s largest KFC franchisee said it received valid applications from eligible retail shareholders for approximately three million shares (approximately $13.5 million) representing 74 per cent of the offer.

The approximately one million new shares not taken up under the offer will be allocated to institutional investors who were sub-underwriters for the offer.

“The successful completion of Collins Foods’ $44.1 million entitlement offer is an important milestone for the company and we would like to thank all shareholders and new investors who participated in the offer and supported the company in its acquisition of 28 KFC restaurants in Australia,” said Graham Maxwell, CEO, Collins Foods.

It’s been a postive week for Maxwell, who saw the terms of the fixed salary of $650,000 per annum raised to $800,000 for the new financial year.

In Australia, the company plans to build eight new KFC restaurants and will integrate the 28 KFC restaurants acquired in Tasmania, South Australia and Western Australia into the Collins Foods’ network.

In Europe, the company will integrate the 16 KFC restaurants acquired in the Netherlands.

Maxwell said that with further growth on fiscal 2018, the company expects to continue to increase shareholder returns.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.


Comment Manually


Inside Retail Polls

Myer's new chief executive
Is John King the right CEO to lead Myer's turnaround?


    Australia’s independent retail revenue over the past 12 months shows an 18 per cent growth than the global average.

    10 hours ago

    Baby goods retailer's non-executive director to step down.

    15 hours ago

    Driverless grocery stores replace supermarkets, while mail is handled by automated delivery units

    19 hours ago

    FREE NEWS BRIEFS Get breaking news delivered