KKR adjusts takeover bid to buy Telepizza in €604m deal

Alessia Argentieri
29 March 2019

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Private equity firm KKR has adjusted its takeover offer for Madrid-listed pizza delivery business Telepizza in a deal that gives the company an enterprise value of €604m.

The GP's new offer has received approval from the Spanish authority CNMV, according to a public document.

Initially, the offer launched by the GP in December 2018 was conditional on the shareholders accepting at least 90% of the target shares. With this new offer, KKR decreased the percentage to 75% but the price remains €6 per share.

The bid, launched through the company Tasty Bidco, is aimed at acquiring 71.43% of the capital that KKR does not already own, equal to a total of 71.95 million shares, for €431m. The price offered values the company at €604m.

The acceptance period for the takeover bid will run from 1 April to 30 April 2019.

It is still unclear if the shareholders, especially funds managers Bestinver, Perpetual and Highclere International, will accept this new offer, given that they had also requested a price increase to €7 per share.

In 2006, Permira led a €850m take-private alongside Telepizza's family owner. In October 2014, KKR entered the company's shareholding by acquiring a 36% stake for €180m as part of a wider refinancing deal.

The company was listed in April 2018. Shares were offered at 775 cents apiece, nearer to the low end of the 700-950 cents price range. The offering gave the company an initial market cap of €780.6m. Selling shareholders Permira and KKR received proceeds of €431m, while the primary portion of the process raised €118.5m.

Prior to the offering, Permira had a 51% stake in the business, while KKR owned a 24.5% stake. Backers include Cyrus Investment Management (4.4% stake), Oak Hill Capital Partners (2.3%), 3i (2.1%), Babson (1.1%), Allcentra (1.1%) and the management team (1.4%).

Following the transaction, Permira and KKR owned a 12.8% and a 7.4% stake in the business, respectively.

Subsequently, KKR bought additional shares in the business and increased its shareholding to 28.57%