Thu, Apr 05, 2012 - Page 10 News List

Burger King to return to New York Stock Exchange

AFP, Washington

Burger King has announced the sale of a 29 percent stake in the fast food chain and its upcoming return to the New York Stock Exchange, two years after it was acquired by an investment firm.

The announcement on Tuesday came one day after Burger King, which has long run a distant second to global hamburger giant McDonald’s, said it would overhaul its menu to entice new customers.

The group said in a statement that its principal shareholder, investment firm 3G Capital, had reached an agreement to sell a 29 percent stake to UK-based Justice Holdings Limited for US$1.4 billion in cash.

The transaction will allow 3G Capital to pocket some profits as the deal will value Burger King at US$4.8 billion, more than the US$4 billion it paid in October 2010.

The goal is to merge Justice Holdings and Burger King, rename the new entity Burger King Worldwide, move its headquarters from Florida to Delaware, and relist the company on the New York Stock Exchange.

“We believe that Burger King’s aggressive plans for international growth will benefit from its visibility as a NYSE-listed public company,” Justice co-founder Nicolas Berggruen said in a statement.

“We looked at many different opportunities over the last 14 months, but Burger King stood out as a unique global player in the expanding international quick service restaurant industry,” he said.

Under the deal, shares in Justice Holdings will no longer be traded in London.

The parties hope to complete the deal by early July.

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