London-listed DP Eurasia has taken a swipe at Jubilant Food Works over its “unsolicited” takeover bid for the firm.
DP Eurasia is the master franchisee for Domino’s Pizza in Turkey, Azerbaijan and Georgia, while Jubilant is the master franchisee for the chain in India.
Jubilant recently increased its stake in the DP Eurasia from 49 per cent to 53.5 per cent, which according to the company’s articles of association triggers a mandatory takeover proposal.
Jubilant plans to take DP Eurasia private at 85p per share – a deal that DP Eurasia said “fundamentally” undervalues the company.
Jubilant now has 30 days to put a formal offer on the table.
In a statement to the London stock exchange, DP Eurasia said that Jubilant acted in an “unsolicited” and “opportunistic way” and encouraged shareholders to take no action.
A statement read: “Having worked openly and constructively with Jubilant, the board remains extremely disappointed that Jubilant decided to proceed in this unsolicited and opportunistic way and without first seeking to reach an agreement on terms which the board would be able to endorse as being in the best interests of all stakeholders.”
The bid from Jubilant came just as the DP Eurasia reported a 30 per cent jump like-for-like sales in the 10 months to October, as the group was bolstered by the opening of 41 new stores in Turkey.
Back in August, the firm decided to put the Russian arm of its Dominos chain into bankruptcy after it failed to find a buyer. The firm had been criticised for continuing to operate in the country long after all other major brands pulled out following Russia’s invasion of Ukraine.
City A.M. has contacted Jubilant Food Works for a comment.