NIGERIA – Food Concepts Plc, a quick service restaurant (QSR) brands operator in Nigeria and West Africa said that it has commenced the process to raise up to US$10 million (N3.6 billion) through issuance of rights issue.

The Chicken Republic Brand operator said in a statement that it kicked off the process following shareholders’ approval at the 16th Annual General Meeting held on November last year, reports This Day.

David Butler, the managing director of the company, pointed out that the right issue will enable the company actualise its expansion plan and launch new brands into its portfolio.

“The rights issue will enable the company to achieve its strategic growth plans and maximise shareholders’ value.

The net proceeds of the rights issue will be utilised in funding store expansion, supply chain and distribution improvements as well as launching new brands to meet the flavour profile of the consumer,” he said.

The company’s directors also noted that the proposed rights issue presents an excellent opportunity for existing shareholders to increase their investment in the company.

The company has also submitted a formal application as well as the relevant documentation to the appropriate regulatory authority for approval.

Food Concept Plc is also a shareholder of Food Concept Pioneer Limited (Butterfield’s and Yum Yum Baked goods Brands), and currently operates 51 company-owned and 19 franchise restaurants across Nigeria and Ghana.

The firm currently runs 55 stores in Nigeria and Ghana under its Chicken Republic brand.

The company is seeking to expand and increase its market share in the West African region through its affordable fast food and baked goods offerings.

By selectively opening additional stores in new and existing communities and the launch of additional brands, the company aims to operate 300 quick service restaurants and dominate the bread and sausage roll market over the next five years.

Founded in 2001, Food Concepts’ shareholders include International Finance Corporation (IFC), a World Bank member and Development Partners International (DPI), a United Kingdom based private equity.

The firm which operates the Butterfield Bakery and Free Range Farms brands also runs its baked good division through a partnership with Pioneer Foods, a leading South African fast moving consumer good s company.