Devyani International Ltd, the franchise operator behind popular quick service restaurant brands like KFC, Pizza Hut, and Costa Coffee, has given the green light to acquire up to 80.72% stake in the Indian food chain ‘Biryani by Kilo’. The approval came during its board meeting held on Thursday, 24 April.

Backed by the Jaipuria family, Devyani International will acquire a controlling interest in Sky Gate Hospitality, the parent company of ‘Biryani by Kilo and other associated brands. Following the deal, Sky Gate Hospitality will become a subsidiary of Devyani International Ltd.

In its regulatory filing, the company said, “Acquisition of up to 80.72% equity stake, on fully diluted basis, in Sky Gate Hospitality Private Limited along with its subsidiaries.”

The company added, “The Company shall discharge the part consideration by way of issue and allotment of 2,37,19,187 equity shares of the Company having face value of Rs 1/- each to the Sellers, at a price of Rs 176.78/- per equity share (including premium of Rs 175.78/-), on a preferential basis.”

Sky Gate, along with its subsidiaries, owns and operates a portfolio of brands including ‘Biryani By Kilo’, ‘Goila Butter Chicken’, and ‘The Bhojan’. The company primarily runs a network of over 100 outlets, including dine-in restaurants spread across more than 40 cities.

The planned acquisition values Sky Gate at Rs 519 crore. Devyani International will acquire up to 80.72% of the company for a total consideration of Rs 419.31 crore.

According to the company, the deal is expected to close within 15 days from the date shareholders approve the preferential issue of equity shares through a special resolution.

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