VTB Capital pays $50 mln for 47% of JV with Burger King
MOSCOW. July 5 (Interfax) - VTB Capital has paid $50 million for a share in a joint company with the fast-food company Burger King Corporation and its biggest Russian franchise Burger Rus, the VTB Group said in a report to International Financial Reporting Standards.
VTB Capital has acquired a 47.22% stake in the joint venture. The co-owners of the Shokoladnitsa chain, headed by Alexander Kolobov, who now own LLC Burger Rus, will receive a minority stake. Burger King Europe, the U.S. corporation's European subsidiary, will also obtain a minority stake.
VTB Capital will invest up to $100 million in this project over three years in separate tranches as the business plan progresses, Tim Demchenko, the head of direct investments and special projects at VTB Capital, said.
Burger King Russia will obtain an exclusive franchise in Russia for 20 years. Previously, Burger King had not given its Russian partners exclusivity. Apart from Burger Rus the franchise was obtained by the Ginza group, which can keep its two outlets but can no longer open any more, the Vedomosti newspaper reported.
Burger Rus has opened 54 Burger King outlets in Russia.