Devyani Dials Up Its Stake: Sky Gate Now 86% Under Its Wing

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Devyani International, the company behind KFC, Pizza Hut, and Costa Coffee in India, is about to own even more of Sky Gate Hospitality. They’ve just signed a deal to increase their stake to 86.13%, spending up to ₹1.06 billion to make it happen.

Key Highlights:

Devyani International already held about 80.7% of Sky Gate. With this new agreement, they’ll bump that up to just over 86%.
The deal is worth up to ₹1.06 billion (that’s ₹106 crore), and it involves both buying shares with cash and issuing new equity shares.
Sky Gate Hospitality runs popular food brands like Biryani By Kilo, Goila Butter Chicken, and The Bhojan. They have more than 100 outlets in over 40 cities, so this is a pretty big network.

Once the deal goes through, Sky Gate will officially become a subsidiary of Devyani International. That means DIL can bring these Indian brands closer into its fold, alongside its big-name international chains.

The board at DIL has already approved issuing new shares at ₹176.78 each to help fund the purchase. The acquisition should be wrapped up within about two weeks of getting shareholder approval.

Sky Gate’s founders, Kaushik Roy and Vishal Jindal, are on board and looking forward to working more closely with Devyani International to grow their brands even further.

Source: Economic Times, News18, Financial Express, New Indian Express, Fortune India