Mubadala boosts takeover bid for Burger King Brazil operator

Mubadala Investment Co. raised its takeover offer for ZAMP, the operator of Burger King and Popeyes restaurants in Brazil, after its initial bid faced resistance from the board and key shareholders.

The Abu Dhabi sovereign wealth fund’s unit MC Brazil F&B Participações is now proposing a tender offer to acquire 45.15 per cent of the firm’s shares at 8.31 reais ($1.62) apiece, compared to the original offer of 7.55 reais, according to a regulatory filing Monday.

That implies a 7.6 per cent premium to Friday’s close. ZAMP was until recently known as BK Brasil Operação e Assessoria a Restaurantes.

Holders including Atmos Capital, Mar Asset Management and Vista Capital had rejected the first offer, saying they had no interest in accepting the acquisition under the proposed terms. The company’s board also voted against the proposal.

Restaurant Brands International, in which the billionaire trio behind 3G Capital Inc. owns a stake, holds an indirect stake in ZAMP. JPMorgan Chase & Co. is acting as Mubadala’s financial advisor.

Shares in ZAMP were up 3.6 per cent in Sao Paulo at 11.30am local time Monday, compared to a 1.4 per cent gain for the Ibovespa stock gauge.