Burger King is sold to Brazilian company

Published in the newspaper Folha de Sao Paulo on September 2, 2010 (in Portuguese) 


Burger King announced this morning an agreement Thursday with Brazil's 3G Capital to sell all its common shares for $ 24 each, or a total of U.S. $ 4 billion, said in a statement the fast-food . The acquisition includes the refinancing of company debt. The transaction is expected to close in the fourth quarter of this year.
At 11h58 (GMT-3) the stock was sold for U.S. $ 23.4 on the NYSE (NYSE), 24% more than the closing price yesterday, to U.S. $ 18.86 per share.
In a statement, Burger King said the term of the agreement was approved unanimously by the Board of Directors Network, and details all the common shares will be sold. The premium obtained with the operation, according to the company, will be 46% on the price of paper - before affected by market rumors.
The agreement provides that 3G Capital to purchase, through public offering, all outstanding shares (listed on the Stock Exchange) company.
About 31% of the outstanding shares owned by members of TPG Capital LP, Goldman Sachs Capital Partners and Bain Capital Investors. The agreement states that this percentage will be offered entirely on the sale.
For the acquisition, 3G Capital won funding directed to purchase all outstanding shares and in order to refinance existing debts.
According to the institutional site of 3G Capital - a company that has connections with the founders of AmBev, entrepreneurs Marcel Telles, Jorge Paulo Lemann and Carlos Alberto Sicupira - 3G Capital focuses on "investing in stocks of well managed companies, primarily solid being traded at a substantial discount to its market, and traded.
In a statement, Alex Behring, managing partner of 3G Capital, justified the purchase to be "the Burger King an icon of global brands and strong franchise network, in addition to offering great products [which] make this [agreement] a perfect fit for 3G Capital - which has a strong track record of long-term investments in brands global consumer and retail. "
DIFFICULTIES
Burger King trades its shares on the NYSE (NYSE) since 2006.
In August, the Burger King low projected demand for the current fiscal year amid a difficult economic recovery and said he was unsure about how much the cost of raw materials, such as meat, would impact the company.
The company said that the high unemployment rate in the U.S. and the austerity programs in Europe would affect sales in restaurants in operation for over a year.
Burger King competes with McDonald's, said he expected commodity prices in the U.S. are weak in fiscal 2011, although the cost of beef and wheat are not accurate.
The fast-food chain currently operates 12 150 restaurants in 50 states and 75 countries. According to Burger King, about 90% of its units are operated by independent franchisees.