TGI Fridays' Indian stakeholders Bistro Hospitality and TGI Fridays Inc have sold their stake in the US casual dining restaurant chain to Singapore-based Universal Success Enterprises. Bistro Hospitality has sold its 75% stake while, TGI Fridays Inc has sold 25% stake for an undisclosed amount.
However, the TGI Fridays brand will still run in India subsequent to the ownership change.
"This was a strategic buyout," Rohan Jetley, chief executive, Bistro Hospitality told the Economic Times. He also confirmed promoter Jetley family's 75% stake sale but did not reveal the deal size.
According to the TGI Fridays India website, Bistro has run TGI Fridays in India for over two decades and at present operates nine stores in the country.
TGI Fridays had closed three stores earlier this year after the rollback of input tax credit hurt its profit margins by 10-15%, the report said. Meanwhile, Bistro later this year said that it would reduce its stake to raise private equity funding to support its expansion and also appointed Centrum Capital as its investment banker.
The report added that the restaurant chain had plans to establish the first Friday's American Bars to tap the dormant demand in tier-II markets and leverage lower rentals.
Infrastructure developer Universal Success Enterprises which was founded by Prasoon Mukherjee in 2000 started to invest in India in the year 2004. The company developed Kolkata West International City which is a 377-acre township in Howrah.