Indian quick-service restaurant (QSR) operator Devyani International (DIL) is set to become a minority shareholder in Thailand-based Restaurants Development.
According to local reports, DIL will invest Rs3.47bn ($37m) in Restaurants Development, which operates 274 KFC restaurants in Thailand.
The investment is aimed at strengthening Restaurants Development's balance sheet and supporting long-term business requirements.
DIL will make the injection via subsidiary Devyani International DMCC (DID) and group entity Yellow Palm.
Around Rs2.32bn of the investment will be used to repay debt that Restaurants Development owes to DID. The remaining amount will be used for working capital and CapEx needs.
In an exchange filing, DIL said: “DID will raise Rs1.14bn of convertible loan from the company and take a short-term loan of Rs2.32bn from Axis Bank Limited, Dubai.
“This loan will be secured by a corporate guarantee of the company and shall be repaid to Axis Bank Limited, Dubai, upon repayment of the existing loan by RD to DID.”
The transaction is expected to be completed by 30 June 2026.
Once complete, DID will hold a 49% stake in Restaurants Development while Yellow Palm will own the remaining 51% stake.
Earlier this month, DIL announced plans to merge three subsidiaries into the parent entity to streamline operations and improve efficiency.
The subsidiaries, namely Sky Gate Hospitality, Blackvelvet Hospitality and Say Chefs Eatery, operate more than 100 outlets.
These include dine-in locations and cloud kitchens across more than 40 cities, including Mumbai, Kolkata and Bengaluru.
