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QIA, Baring to exit RMZ; Jubilant Consumer may pare stake in Jubilant FoodWorks
Photo Credit: Shah Junaid/VCCircle

Qatar Investment Authority (QIA) and Baring Private Equity Partners India are looking to exit Bengaluru developer RMZ Corp, a media report said.

RMZ will buy back the stake held by Qatar’s sovereign fund while Baring PE India is looking to sell the stake to other investors, Business Standard reported, citing sources aware of the development.

RMZ chairman Raj Menda told the financial daily that they were in final talks with QIA about pricing and the exit is likely to be completed by March.

The developer has presence in Bengaluru, Chennai, Hyderabad, Pune and Delhi. It has both commercial and residential projects and claims to have a portfolio of over $3 billion.

In another report, Financial Chronicle reported that Jubilant Consumer Pvt. Ltd may sell part of its stake in Jubilant FoodWorks Ltd to meet its debt payment obligations.

The company’s internal cash flow may be inadequate to meet the repayment obligations, the report said.

Jubilant FoodWorks is the India franchisee for Domino’s Pizza. As on September 2017, Jubilant Consumer held a 44.94% stake in Jubilant FoodWorks.

The debt is set to mature over the next four years, according to India Ratings. As on 31 March 2017, Jubilant Consumer’s total adjusted debt was Rs 820 crore. The company needs to clear Rs 300.3 crore in 2018-19 and Rs 300 crore in 2019-20, the ratings firm said.

In April 2016, Jubilant Consumer sold a 3.6% stake in Jubilant Foodworks for Rs 303 crore to support a group company and meet its debt repayment obligations.

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