Westlife Development today said it has received Bombay High Court’s approval for consolidation of its two subsidiaries —— Hardcastle Restaurants Pvt Ltd (HRPL) and Westpoint Leisureparks Pvt Ltd.
HRPL is the master franchisee for McDonald’s Restaurants in west and south India.
The scheme of arrangement involves consolidation of HRPL and Westpoint Leisureparks under Westlife Development Ltd. The B L Jatia family holds majority stake in these companies.
Westlife Development, which has interests in trading and hospitality, besides quick service restaurant industry, also said its board has approved plans to raise Rs 180 crore through preferential allotment of shares amounting to 3.47 per cent stake in the company to Singapore headquartered Arisaig India Fund Ltd.
“The consolidation of our companies under Westlife Development opens up options for us to accelerate our growth plans for expanding McDonald’s restaurants in west and south India,” Westlife Development Ltd Vice Chairman Amit Jatia said in a statement.
As a consequence of the merger of the companies, the equity base of Westlife Development would expand to Rs 15 crore.
After the consolidation, Hardcastle Restaurants is a direct subsidiary of Westlife Development Ltd.
HRPL operates McDonald’s in west and south India while Connaught Plaza Restaurant operates the fast—food giant in north and east India.
On the utilisation of the proceeds from the share allotment, Jatia said: “The funds raised through preferential allotment will be used to invest in the growth of our business aggressively, increase our retail footprints, fortify our presence in the existing markets and enable us to enter newer markets.”
Westlife Development had reported consolidated revenue of Rs 684.3 crore in 2012—13.