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Financial News

Apr 2012 Financial News

Prestige selling KFC in Dominican Republic

Apr 13, 2012

Restaurant franchisee Prestige Holdings Ltd will be selling its shareholding in 12 KFC and two TGI Friday's restaurants in the Dominican Republic by April 30.

In a notice to shareholders yesterday regarding its 50 per cent stake in Kentucky Foods Group Ltd (KFGL) in the Dominican Republic, Prestige chairman Joseph Esau said the company entered into a stock purchase agreement dated April 10 for the sale of the 50 per cent shareholding in KFGL owned by Prestige to Prestige's joint venture partner, Montlac Corp.

The financial effects of that transaction were anticipated and accounted for in Prestige's recently published financial statements for the year ended November 30, 2011 and no further losses or charges are expected from this investment, he said.

The effect of the transaction was listed in Prestige's financial statements last year as a loss of $29.5 million.

Subsequent to the closing of the sale, set for April 30, Prestige will transfer its rights and obligations under the franchise agreements for the 12 KFC and two TGI Friday's restaurants in the Dominican Republic to Montlac.

The Prestige directors are satisfied the sale of the KFGL investment, upon the terms of the Stock Purchase Agreement, is in the best interests of Prestige and its shareholders, Esau stated.

Prestige operates 65 KFC, Pizza Hut and TGI Friday's restaurants in Trinidad and Tobago as well as 40 Subway restaurants.

Trinidad Express
Friday April 13, 2012