Shares of Devyani International rallied 7% on 19 December after the company announced a partnership to enter Thailand’s quick-service restaurant market.

In its regulatory filing, the company said that its subsidiary, Devyani International DMCC, Dubai, has entered into a share purchase agreement to acquire a controlling stake in Restaurant Development Co Ltd, Thailand, to enter its quick service restaurant/limited service restaurant market in the country.

The transaction is expected to be completed before the end of the current fiscal year and is subject to all customary regulatory and other approvals.

This is a strategic collaboration between the company and Temasek Holdings (Private) Limited, which is a global investment company located in Singapore and has over SGD 380 billion in assets under management.

The company will pay Rs 341.4 crore for a 50% stake in Restaurant Development Co. while Temasek Holdings will acquire a 48% stake in the Thailand-based company, and the remaining 2% of the stake will be acquired by a local Thai partner.

The company has called for an extraordinary general meeting on 11 January to seek shareholders’ approval for the investment in Devyani International DMCC.

At 11:25 am, the shares of Devyani International were trading 4.18% higher at Rs 190.70 on NSE.