Domino’s chases the dough in German deal

DOMINO’S Pizza has pushed the button on a $165m capital raising to buy out its joint venture partner in its German pizza chain business, expanding its reach from Berlin to Taipei.

It will further underline the strength and scope of the Brisbane-based Domino’s Pizza company that now is easily the largest operator of Domino’s pizza stores under the Domino’s brand – with more than 3400 stores spread across countries such as France, Luxembourg and Cambodia.

The Asx-listed Domino’s is more than double the size than the next largest Domino’s master franchise owner.

The fast-food chain operator placed its shares in a trading halt on Thursday as it sets about raising $150m in a fully underwritten institutional placement as well as a non underwritten share purchase plan to raise up to a further $15m. The proceeds of the fresh injection of capital will be used to fund payment of the option exercise price to British partner Domino’s Pizza Group for the purchase of all its shares in its joint venture in Germany. Additional proceeds from institutional placement and share purchase plan will be used to pay down debt.

In December 2015, the Asx-listed Domino’s Pizza forged a deal to buy two-thirds equity interest in a newly formed joint venture that saw it partner with Uk-listed Domino’s Pizza Group to acquire the Joey’s Pizza chain of 212 stores in Germany.

Domino’s Pizza chief executive Don Meij said there were still more growth opportunities for Domino’s Pizza, with the Asia Pacific region a specific geography that interested the Asx-listed pizza maker.