Zamp (BKBR3), owner of Burger King Brasil, informed the market this Friday morning (23) that Mubadala, the sovereign wealth fund of the United Arab Emirates, has officially given up on buying it.
The acquisition attempt generated controversy this week – the two parties exchanged letters differing on the possibility of the acquisition, with the fear that Restaurant Brands International (RBI), world owner of the Burger King and Popeys brands, would terminate the right-to-use contract for these in the Brasil by Zamp in case the sale is closed.
Finally, RBI expressed its opinion and defended that the transaction could, in fact, violate the restrictive clauses of the contract for the use of brands in Brazil, due to the participation of the Mubadala fund in other franchise networks.
“Given the conclusion informed by Burger King and Popeys Louisiana, and considering the potential material adverse impact on the company that would result from the termination of the contracts, we understand that it is not possible to proceed with the realization of the offer”, explains the Arab fund in a letter.
Finally, Mubadala highlights that it was surprised, along with the other Zamp shareholders, by RBI’s attitude and also stated that it did not have any other local investment in the sector in question.
“It is worth noting that the company does not have, in its bylaws, mention of any type of restriction on the acquisition of shares issued by it, whether or not involving its shareholding control”, he explains. “The offeror and the other shareholders of Zamp were surprised by a real poison pill, hitherto hidden, which subjects the acquisition of control of the company to the discretion of the Master Franchisor”.