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Blue Planet runs an a-la-carte pan Indian cuisine restaurant chain under the brand name ‘SALT'. SALT is a smart casual dining restaurant serving authentic Indian cuisine. Currently it has 6 restaurants across two metro cities i.e. in Chennai & Bengaluru and 2 restaurants are in pipeline. Its turnover for financial year 2022-2023 was Rs 32.8 crore.
In an exchange filing, the QSR chain operator said, “The share subscription & share purchase agreement and shareholders' agreement are executed to acquire 1,282 and 4,518 equity shares constituting 11.77% and 41.49% of paid-up share capital of Blue Planet Foods (Blue Planet) by the company and its subsidiary Red Apple Kitchen Consultancy.”
The terms of agreement includes that the company shall have the right to appoint majority of the directors to the board of Blue Planet, option to make additional investment of Rs 8 crore, the provisions with respect to transfer of shares such as right of first offer (ROFO), tag-along and drag-along right, Offer for sale.
The company said that the proposed acquisition will complement its existing offerings and will also expand its brand portfolio.
The cost of acquisition of equity shares of Blue Planet is Rs 39,844 per equity share. The acquisition will be completed by 31 October 2023. Total cash outgo will be Rs 23.1 crore and will be funded through internal accruals.
On the completion of transaction, Blue Planet will become a subsidiary of the company. Post transaction, the shareholding of the company and Red Apple will be 53% and the founders shareholding will be 47%.
Barbeque-Nation Hospitality is primarily engaged in the business of operating casual dining restaurant chain in India.
The company reported consolidated net loss of Rs 4.31 crore in Q1 FY24 as compared with net profit of Rs 15.18 crore in Q1 FY23. Net sales rose 2.9% year on year to Rs 323.89 crore in Q1 FY24.
The scrip fell 0.25% to Rs 765.55 on the BSE.
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