Jubilant Food Works achieves full ownership of Bangledeshi joint venture 

INDIA – Indian food service company Jubilant Food Works (JFL) has announced that it will acquire the remaining 10 percent share in its joint venture Jubilant Golden Harvest from Golden Harvest.  

JFL is a master franchise of fast-food restaurant brands such as Dominos and Dunkin’ Donuts. 

 It also has franchise rights for Popeyes, an American multinational chain of fried chicken fast-food restaurants for markets such as India, Bangladesh, Nepal and Bhutan. 

According to a regulatory filing by JFL, the deal gives it full ownership of JGHL, which offers domino’s pizza in Bangladesh. 

According to JFL, it will be an “all-cash consideration” and the transaction will be based on a valuation report to be obtained from a chartered accountant/ Independent Accounting Firm. 

Once the transaction is completed, JGHL will become a wholly-owned subsidiary of the Noida, India headquartered company.  

As of December 31, 2021, JGHL, a public limited company incorporated in Bangladesh, was operating eight restaurants.  

JFL CEO bows out

Meanwhile, shares of Jubilant FoodWorks slumped went tumbling down in March after company chief executive office Pratik Pota resigned to pursue a “quasi-entrepreneurial opportunity”. 

In a BSE filing, JFL said its Board of Directors has accepted the resignation of Pota as the CEO and Wholetime Director, “ as he wishes to pursue opportunities outside Jubilant FoodWorks Ltd.” 

Pota, who joined JFL in 2017 and has been critical in the company’s growth, will continue in his current role till June 15, 2022, as JFL scrambles to identify his successor. 

“I will be moving to pursue a quasi-entrepreneurial opportunity and will share more details soon. I am excited and also admittedly a little nervous but moving ahead with a strong belief in my credo that, beyond fear lies victory…,” Pota tweeted. 

The sudden resignation of the company head shocked investors on what will happen to the operations amid a tough environment resulting in the 13th fall in share price. 

Moreover, several brokerages downgraded the stock rating citing leadership change amid a challenging macro environment. 

Morgan Stanley reportedly downgraded the share rating to ‘underweight’ citing sudden leadership change threatens near-term outlook. 

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