Domino's Pizza Group (DPG), the master franchisee of Domino's in the UK, has proposed increasing its stake in an Icelandic subsidiary earlier than planned.
The company currently holds a 51 per cent stake in Domino's Iceland, but plans to increase this to 95.3 per cent for €30.2m (£26.7m) cash.
The decision comes earlier than had originally been anticipated. The shares not already owned by the group were subject to a put and call agreement which would be exercisable between June 2019 and 2020, but by scooping them up now, DPG believes it is getting a better price.
This is because the Iceland business has proved to be high-performing. It has the highest average weekly unit sales of any country in the Domino's worldwide system.
DPG added that its early acquisition will give the business increased flexibility by removing the veto rights of minority shareholders.
DPG chief executive David Wild said: "We're really pleased to be increasing our ownership of Domino's Iceland earlier than was planned. It's a great business and after 18 months of partnership, we have good visibility of its strengths and further opportunities for growth.
"There is a strong financial and commercial rationale for buying out minorities now rather than waiting for the put or call option to be exercised."
The group also announced this morning that it has completed a £350m refinancing and will now commence a £20m share buyback.
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