Domino’s Pizza Enterprises to raise $112 million to fund German unit acquisition

(Reuters) – Australia’s Domino’s Pizza Enterprises said on Thursday it would raise A$165 million ($112 million) to fund the acquisition of its Germany-based joint venture that it owns with Domino’s Pizza Group Plc.

The Australian franchise of Domino’s said it would issue new shares at a price of A$65.05 per share, a 2% discount to the stock’s last closing price on Nov. 30.

In November, the company received an option exercise notice from Domino’s Pizza Group Plc requiring the purchase of all of its shares in the Germany joint venture.

The joint venture is two-thirds owned by the Australian company, with the remainder owned by the London-listed Domino’s Pizza Group.

Any funds left after the acquisition will be used towards debt retirement, Domino’s Pizza Enterprises said.

The fundraising announcement came a month after the company said inflationary headwinds would continue into 2023, primarily due to a rise in raw ingredient prices, surging gas prices in Europe, and higher labour costs in some markets.

($1 = 1.4736 Australian dollars)

(Reporting by Tejaswi Marthi in Bengaluru; Editing by Shailesh Kuber and Subhranshu Sahu)