Shares of KFC and Pizza Hut Indian operator Devyani jump on merger with rival franchisee Sapphire
CNBC••business
Key Points:
- Devyani International, the Indian franchisee for KFC and Pizza Hut, announced plans to merge with rival franchisee Sapphire Foods India, causing Devyani's shares to rise up to 5.3%, while Sapphire's shares fell as much as 6.4%.
- The merger, valued at approximately $934 million according to Reuters, will create a single entity overseeing KFC and Pizza Hut operations in India, with Devyani issuing 117 shares for every 100 Sapphire shares.
- The deal aims to accelerate KFC's expansion and revitalize Pizza Hut in India, a key growth market for Yum! Brands, pending regulatory and shareholder approvals expected within 12 to 15 months.
- Devyani International
