Ibersol makes up to €160 million from the sale of Burger King restaurants

  • ECO News
  • 3 August 2022

The restaurant group has reached an agreement to sell its Burger King restaurants in Portugal and Spain to Restaurant Brands Iberia, anticipating a capital gain of up to €160 million.

Ibersol has signed an agreement with Restaurant Brands Iberia to sell the two companies that operate Burger King restaurants in Portugal and Spain, according to a statement sent to the CMVM this Wednesday.

“Ibersol, SGPS, S.A. informs that, after initiating a new negotiation process, was signed today a share purchase and sale agreement relating to the sale to BK Portugal, S.A. and to Burger King Spain, S.L.U. (companies controlled by Restaurant Brands Iberia, S.A.) of the shares representing the whole share capital, respectively, of IBER KING, RESTAURAÇÃO, S.A. and of LURCA S.A.U. (“Iberking” and “Lurca”), companies which operate the restaurants with Burger King brand in Portugal and Spain,” the statement said.

According to Ibersol, the agreement values the companies at €259.7 million (enterprise value), “on a cash and debt free basis, being part of the price (in the amount of €15.5 million) contingent upon the satisfaction of conditions related to the future evolution of EBITDA and/or cash flows generation.”

Ibersol admits it will also transfer “certain assets in the global amount of €6.6 million from entities of Ibersol Group to the transaction perimeter, as well as the transfer of certain real estate assets held by Iberking in the global amount of €8.4 million to other entities of Ibersol Group.”

The operation is still subject to to “certain conditions precedent,” including the final approval from the Portuguese Competition Authority.

“Assuming that the maximum amount of the price is entirely received, the transaction results in a capital gain of approximately €160 million in the Ibersol’s consolidated accounts,” the company pointed out.