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Hardcastle Restaurants Private Limited, a master franchisee for west and south India operations of McDonald’s Restaurants, has become a direct subsidiary of Westlife Development Limited.
The Bombay High Court has approved Westlife Development Ltd’s scheme of arrangement for consolidation of its subsidiaries, said Westlife Development Limited, a listed company.
The Westlife Development Limited (WDL) board has approved preferential allotment of 54,04,593 shares to Arisaig India Fund at Rs 333.05 per share. The merger approval paves the way for the expansion of equity base to 15 crore shares, the company said.
The company will allot the shares to Arisaig India Fund, amounting to 3.47 per cent stake, thereby will raise Rs 180 crore through the preferential issue.
The preferential allotment to Arisaig will have a lock-in period of one year from the date of allotment.
The scheme of arrangement involves the consolidation of BL Jatia group companies, Hardcastle Restaurants Private Limited (HRPL), through its majority shareholder, Triple A Foods, and Westpoint Leisureparks, a majority shareholder of Triple A Foods, under Westlife Development Limited (WDL). The BL Jatia family holds majority ownership in these companies.
The WDL board, which met on July 23, has approved preferential allotment of equity shares to Arisaig India Fund Ltd. Arisaig India Fund is a registered Singapore based FII and part of Arisaig Partners.
Arisaig Partners is a fund management company with $5 billion in assets across emerging markets. It specialises in investing in dominant consumer companies in these markets.
Amit Jatia, Vice-Chairman of Westlife Development Limited said, ``The consolidation of our companies under Westlife Development opens up options for us to accelerate our growth plans for expanding McDonald’s restaurants in the west and south India. The consolidation will also open up opportunities for the India market to invest in the growth of the McDonald’s franchisee Hardcastle Restaurants Private Limited, through Westlife Development.''
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