Sapphire Foods India Ltd., part of the Yum! Brands, issued a clarification to the exchanges on Friday, July 4, on the reports of a potential merger between itself and Devyani International Ltd.”In this regard, we wish to inform you that the company evaluates various strategic opportunities in the ordinary course, for growth and expansion of business,” Sapphire Foods said in its clarification, adding that at this stage, there is no material event that requires a disclosure.
Economic Times had reported earlier in the day that Yum! Brands is mediating a merger between Devyani International and Sapphire Foods, its Indian franchise partners.
The move is aimed at creating synergies amidst slowing growth in the Quick Service restaurant (QSR) space and to consolidate the KFC and Pizza Hut operations under Devyani International, which is owned by RJ Corp, the report stated.CNBC-TV18 had not independently verified the Economic Times story.
Economic Times had reported earlier in the day that Yum! Brands is mediating a merger between Devyani International and Sapphire Foods, its Indian franchise partners.
The move is aimed at creating synergies amidst slowing growth in the Quick Service restaurant (QSR) space and to consolidate the KFC and Pizza Hut operations under Devyani International, which is owned by RJ Corp, the report stated.CNBC-TV18 had not independently verified the Economic Times story.
Shares of Sapphire Foods are off the highs of the day, but are still trading with gains of 6.5% at ₹341.45, while those of Devyani International are trading 3.5% higher at ₹173.1.
