Mubadala-backed Zamp to buy Starbucks brand rights, stores in Brazil
Adds comment from SouthRock in paragraph 10, updates share reaction
SAO PAULO, June 6 (Reuters) -Brazilian restaurant chain operator Zamp ZAMP3.SA has agreed to buy the rights to operate the Starbucks SBUX.O brand and some stores in the South American country, it said on Thursday, sending its shares soaring.
Zamp, which is controlled by Abu Dhabi state investor Mubadala MUDEV.UL, operates Burger King and Popeyes restaurants in Latin America's largest economy, and had disclosed in February it was in talks for the Starbucks deal.
The firm in a securities filing said the 120 million-real ($22.7 million) deal was signed with SouthRock, which owns the rights and assets and has been in bankruptcy protection since last year.
Sao Paulo-traded shares of Zamp jumped as much as 19.4% before closing with a nearly 10.2% gain.
It is not yet known exactly how many of the more than 100 Starbucks stores in the country Zamp would buy, the company said.
As required by SouthRock's bankruptcy proceedings, the deal would be implemented through a competitive process in which Zamp would have the right to match potentially higher bids, according to the filing.
Zamp said the deal requires approval from Brazil's antitrust watchdog CADE and the court overseeing SouthRock's bankruptcy.
It also needs a final agreement with Starbucks, which has so far agreed to an initial deal authorizing Zamp to explore the brand and develop operations of the coffee shop chain in Brazil.
A Starbucks spokesperson confirmed the company has been "in conversations with Zamp to directly manage Starbucks retail cafes across Brazil."
SouthRock confirmed the agreement, pending approvals, adding that it remains committed to its court-supervised reorganization proceedings to restructure and resume the growth of its business.
($1 = 5.2991 reais)
Reporting by Andre Romani; Editing by Gabriel Araujo, Kirsten Donovan and Chris Reese
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
