DP Poland plc: £29.5 million Acquisition of Dominium S.A.

N+1 Singer are delighted to have advised DP Poland plc on its c.£29.5 million Acquisition of Dominium S.A., a Polish pizza restaurant group.

Consideration for the Acquisition was satisfied by the issue of 283,766,661 New Shares at the Issue Price of 8 pence per share and an unsecured Loan Note of €1.3 million to Malaccan Holdings Limited. Additionally, outstanding debt due from Dominium to Malaccan Holdings Limited was converted into a further unsecured Loan Note of €6.2 million.

The Acquisition constituted a reverse takeover under the AIM Rules for Companies.

Dominium is a Polish pizza restaurant group with restaurants located across a number of cities and towns in Poland including Warsaw and Krakow.

The Directors believe that the combination of the two businesses will place the Company within the top three pizza chains in Poland in terms of stores and restaurants, helping the Company achieve its objective of becoming a market leader in Poland.

Following readmission and completion of the Acquisition, DP Poland is now valued at a market capitalisation of c.£58.2 million.

Result of Fundraising

DP Poland also announced on 18 December 2020 the result of a successful oversubscribed Placing of 19,965,361 New Shares and a Subscription of 23,784,639 New Shares with certain existing and new investors, at a price of 8 pence raising a total of £3.5 million before expenses. Additionally, 21,828,204 Sale Shares (comprising part of the 283,766,661 Consideration Shares) have been successfully placed at the Issue Price equating to £1.7 million (before expenses) sales proceeds for the benefit of Malaccan Holdings.

The net proceeds of the Fundraising receivable by the Company will principally be applied towards capital expenditure for integration and costs, network optimisation and for general working capital purposes.

About DP Poland plc

Domino’s Pizza is operated in Poland by DP Polska S.A. (DPPSA), a Polish registered company which is wholly owned by DP Poland plc (DPP). DPP is a UK based company listed on the Alternative Investment Market (AIM). The exclusive rights of the Master Franchise Agreement have been granted, with a grant date of June 2010, to DPPSA by Domino’s Pizza Overseas Franchising (DPOF, also referred to as DPI) for an initial period of 15 years with an option to renew for a further 10 years, subject to certain conditions, including a growth clause. That growth clause is subject to an updated opening schedule of 55 stores trading by YE 2018 and 69 stores trading by YE 2019. Growth for 2020 and the years thereafter is to be mutually agreed between both parties.

Poland has a population of 38 million people and has the potential to become a very significant pizza delivery market. DP Poland’s objective is to establish Domino’s Pizza as the leading pizza brand in Poland.

Ticker: DPP
Market Cap: £58.16 million*
Website: Click here

*As at 14/01/2021

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