Business
£11 million investment in DP Poland Plc
£11 million investment in DP Poland Plc.
About this update from Domino's Pizza Group Plc
[{"type":"text","content":"\n\n27 March 2024 LEI: 213800Q6ZKHAOV48JL75\nThis announcement contains Inside Information\n \nDomino's Pizza Group Plc\n \n£11 million investment in DP Poland Plc to support growth opportunities\n\nDomino's Pizza Group plc (\"DPG\" or the \"Company\") is pleased to announce that it has agreed to invest £11 million in DP Poland plc (\"DPP\") to support growth opportunities across DPP's business (the \"Investment\"). DPP, an AIM listed company, operates 111 Domino's Pizza stores and restaurants in Poland and a further five in Croatia.\nThe Investment will be executed via a primary issuance of ordinary shares by DPP. The Investment is one component of a broader fund raising to raise approximately £20.5 million that was announced by DPP today (the \"Fundraise\"). The Investment will be executed at a price of 9.92 pence per share, representing a 23.1% discount to DPP's closing price on 26 March 2024. Following completion of the Investment, and assuming the full £20.5 million is raised, the Company will own approximately 12.1% of DPP's issued share capital. The Investment is conditional on the approval of DPP shareholders and will be funded out of DPG's free cash flow at completion. Following completion, DPG will have the right to appoint one representative to the DPP Board.\nThe proceeds from the Fundraise will be used to further accelerate DPP's growth by leveraging its organic sales expansion with store rollouts and potential acquisition opportunities. The Board of DPP estimates the market potential of Poland to be approximately 500 Domino's stores by 2030.\nAlongside the Investment, the Company has entered into an option agreement to have the ability to purchase additional ordinary shares at a future date from Malaccan Holdings Limited up to a maximum total position of 29.99% of DPP's issued share capital including ordinary shares held by DPG and DPG's concert parties[1].\nFollowing DPG's recently announced growth framework, DPG has been working at pace, and with discipline, to assess select value enhanc...