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Tag: majority

  • South Korean Firm The Venture Acquires Majority Stake in Chicken Plus Vietnam, Targets Rapid Expansion

    South Korean Firm The Venture Acquires Majority Stake in Chicken Plus Vietnam, Targets Rapid Expansion

    South Korean investment firm, The Venture, has recently acquired the majority shares of Chicken Plus’ business operations in Vietnam. This is part of their overseas investment project fund.

    Chicken Plus: An Expanding Brand

    Chicken Plus, a renowned fried chicken brand from South Korea, operates under a franchising model. The chain, which was first established in 2016, has seen significant growth in its domestic market with over 500 locations currently in operation.

    In 2019, the brand made its debut in Vietnam and has since expanded to more than 100 locations across the nation.

    Investment Strategy

    The Venture secured its majority stake in Chicken Plus Vietnam through an overseas investment project fund. This fund also includes a key domestic chicken franchise company as a strategic investor.

    The investment firm aims to build on the existing local store network and operational infrastructure of Chicken Plus Vietnam. The goal is to increase its store count to 270 within the next four years.

    Aside from this expansion plan, the company also has plans to establish its own poultry farm. They aim to internalize production, distribution, and sales processes to ensure cost competitiveness and quality control.

    No Changes to Management

    Following the acquisition, there will be no alterations to the existing management or personnel.

    Daehyun Kim, a partner at The Venture who supervises investments in Vietnam, suggests that the acquisition’s primary objective is to enhance asset value. This is to be achieved through the integration of the Korean restaurant system with local infrastructure.

    The Venture firm has a history of investing in logistics data solutions and e-commerce startups, primarily in Vietnam and Malaysia. This latest deal indicates their expansion into the restaurant sector.

    Questions & Answers

    What is the goal of The Venture’s acquisition of Chicken Plus Vietnam?
    The Venture aims to increase the store count of Chicken Plus Vietnam to 270 within the next four years, by leveraging the existing local store network and operational infrastructure.

    What changes will occur after the acquisition?
    There will be no changes to the existing management or personnel after the acquisition.

    What is the investment history of The Venture firm?
    The Venture has a history of investing in logistics data solutions and e-commerce startups, primarily in Vietnam and Malaysia. This latest acquisition signals its expansion into the restaurant sector.

  • Emirates NBD To Acquire Majority Stake In Rbl Bank In Unprecedented $3 Billion Investment

    Emirates NBD To Acquire Majority Stake In Rbl Bank In Unprecedented $3 Billion Investment

    Dubai-based banking group, Emirates NBD, has revealed that it will acquire a majority share in an Indian bank. This move represents the most significant foreign investment in India’s financial sector to date.

    Emirates NBD has confirmed an arrangement to purchase a 60 percent stake in RBL Bank, based in Mumbai. The deal, worth approximately $3 billion, will be carried out through a preferential issue of shares. This acquisition will set a new record for foreign direct investment in India’s financial services industry.

    Emirates NBD has expressed that the acquisition demonstrates its confidence in the Indian economy and emphasizes the strategic significance of India within the India-Middle East-Europe Economic Corridor (IMEC).

    “This strategic partnership marries RBL Bank’s burgeoning domestic franchise with Emirates NBD’s regional reach and financial expertise, providing a unique platform for growth and innovation”, says Shayne Nelson, group CEO of ENBD. He further added that a more substantial presence in India via a well-established business such as RBL Bank will complement ENBD’s services to customers operating across the MENATSA region.

    Questions & Answers

    What percentage stake is Emirates NBD acquiring in RBL Bank?
    Emirates NBD is acquiring a 60 percent stake in RBL Bank.

    What is the approximate worth of the deal between Emirates NBD and RBL Bank?
    The deal is approximately worth $3 billion.

    How does the acquisition of RBL Bank benefit Emirates NBD?
    The acquisition not only allows Emirates NBD to increase its presence in India but also complements its services to customers across the MENATSA region. It also provides a unique platform for growth and innovation by combining RBL Bank’s domestic reach with Emirates NBD’s regional reach and financial expertise.

  • Titan Acquires 67% Stake In Damas Jewellery: A Strategic Move To Expand Beyond Gulf Market

    Titan Acquires 67% Stake In Damas Jewellery: A Strategic Move To Expand Beyond Gulf Market

    The Indian lifestyle retail giant, Titan, known for owning the Tanishq jewellery brand, has recently made a significant acquisition. The company bought a 67% stake in Damas Jewellery, which is based in Dubai, for a total of US$189 million (AED695 million). This purchase from Qatar’s Mannai Corporation is the second-largest acquisition Titan has made thus far and represents a major strategic move for the company to grow beyond its principal customer base in the Gulf region.

    Damas Jewellery Background

    Damas Jewellery has a long and storied history that began in 1907. The company currently operates 146 stores in six Gulf Cooperation Council (GCC) countries, including the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain. However, the British brand Graff’s franchise business is not part of the acquisition agreement with Titan.

    The Impact of Acquisition

    Titan’s Managing Director, C K Venkataraman, has been quite vocal about the benefits of this acquisition for the company. According to him, this strategic move not only opens up significant new global opportunities but also boosts the company’s standing in the GCC’s jewelry market.

    “After successfully establishing Tanishq in the GCC and the US, our ambition for global jewelry play is moving to the next stage,” Venkataraman said. “With the Damas acquisition, Titan is expanding its focus beyond its traditional diaspora customers to target other nationalities and ethnicities.”

    Transaction Details

    The acquisition transaction was based on Damas’ enterprise valuation of $283 million. Additionally, it includes a provision for Titan to buy the remaining 33% stake from Mannai after December 31, 2029, subject to certain conditions.

    Titan, a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), first entered the GCC market in 1993 with Tanishq. Today, it operates 15 stores across the region, with a flagship store in Dubai that was launched in 2020.

    Questions & Answers

    What is the significance of Titan’s acquisition of Damas?
    The acquisition enables Titan to expand its customer base, enhance its position in the GCC jewelry market, and increase its global market opportunities.

    What does Damas bring to the table?
    Damas, founded in 1907, brings longevity and a strong presence in the GCC region with 146 stores in six countries.

    What future options does the acquisition offer?
    The agreement includes an option for Titan to acquire the remaining 33% stake in Damas from Mannai after December 31, 2029, subject to certain conditions.