Domino’s Pizza Enterprises is set to acquire the balance of its German joint venture operations for $150 million.
The acquisition will be funded by an institutional placement of about 2.3 million new shares at $66.38 per share, indicating strong support from existing and new investors. Eligible shareholders will also be invited to apply for up to $30,000 worth of new shares.
The pizza chain says it will use the money to expand its global footprint while any surplus funds will be used for debt retirement.
Domino’s Pizza Enterprises CEO, Don Meij, said the support from new and existing institutional investors reflected shareholder feedback before the capital raising.
“We look forward to acquiring full ownership in Domino’s Pizza Germany and continuing to build the momentum across our network and delivering value to our customers, team members, franchisees and investors.”
The company has also completed the acquisition of its Domino’s Malaysia and Singapore businesses while the purchase of its Cambodian subsidiary is pending regulatory approval, which will be completed early next year.
The former CEO of Domino’s Belgium and Luxembourg business, Ringo Joannes, will now take charge of these Asian markets.
The international expansion is part of a rapid expansion program by the pizza company, which recently announced plans to open another 10 stores across Australia and New Zealand before the end of the year.