Ibersol rejects deal to sell Burger King restaurants

After having received a new proposal from Restaurant Brands Iberia (RBI) for the purchase of the Burger King brand restaurants in Portugal and Spain, Ibersol decided “not to accept the offer,” putting an end to this process.

“After analyzing together with its financial and legal advisors the terms of the final overall proposal presented by RBI, including in particular the proposed value and associated conditions, the Board of Directors concluded that, in light of the best interests of Ibersol and its stakeholders, there are no conditions to continue pursuing this process, thus having decided not to accept RBI’s offer,” the Porto-based group announced in a statement sent to CMVM.

On June 13, RBI submitted a new proposal for the purchase of Burger King restaurants based on an enterprise value of €250 million, on a cash and debt-free basis, plus €7 million in tax credits and a further €3 million from the investment in two additional restaurants that will open in 2022.

This proposal came one week after the previous one had been rejected, and was still subject to the verification of conditions related to the future evolution of EBITDA and/or cash flow generation, as well as “conducting additional due diligence and discussing the contractual documentation of the potential transaction,” according to the group, which also owns Pizza Hut, in a press release last June.

Ibersol’s board of directors had started exclusive negotiations with this group on March 10.