BurgerFuel Worldwide Limited
Transaction Type: Company meeting (Share buyback)
Acquirer: Franchise Brands LLV
Independent Adviser(s): Simmons Corporate Finance (Rule 18)
Date of meeting: 30/08/2018
In February 2014, BurgerFuel Worldwide Limited (BurgerFuel or the Company) shareholders approved the Company entering into a collaboration agreement with Franchise Brands LLV (Franchise Brands) and Franchise Brands acquiring 5,963,355 ordinary shares in BurgerFuel. Up to July 2018, Franchise Brands’ shareholding represented 10.00% of BurgerFuel’s total shares on issue.
In August 2016, the collaboration agreement was terminated and BurgerFuel entered discussions with Franchise Brands to buy back Franchise Brands’ shares.
The first buyback occurred on 17 July 2018 where BurgerFuel bought back and cancelled 3,145,355 ordinary shares from Franchise Brands at US$0.25 per share.
The second buyback was proposed in the BurgerFuel notice of meeting which was announced on 15 August 2018. The notice of meeting included an Independent Adviser’s Report prepared by Simmons Corporate Finance on the merits of the proposed transaction.
On 30 August 2018, BurgerFuel shareholders approved the buyback. The effect of the buyback was to increase JCR Investment Limited and its associates' voting control in BurgerFuel from 63.96% to 67.31%.