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BK prices secondary offering of stock

MIAMI Burger King Holdings Inc. said Wednesday that three private-equity shareholders would sell 18 million shares of the restaurant company’s common stock in a secondary offering priced at $25 per share.

Burger King’s stock, which closed at $25.16 per share on Tuesday prior to this announcement, fell 0.56 percent on Wednesday to close at $25.02.

The selling shareholders — funds controlled by private-equity firms TPG Capital, Bain Capital Partners and the Goldman Sachs Funds, which together are majority owners of Burger King — will also offer to the underwriters of the offering an option to purchase up to an additional 2.7 million shares, Burger King reported.

Last week, when this offering was first announced, Burger King had said the private-equity firms planned to offer 23 million shares, with an over-allotment option of up to 3.45 million units. That number of shares originally slated for sale represented between 29 percent and 33.5 percent of the group’s 79 million shares, or a 58-percent holding in Burger King. Now, the shares slated for sale represent between 23 percent and 26 percent of the private-equity firms’ stake.

The secondary could gross the private equity firms $517.5 million. Burger King, which operates or franchises more than 11,200 namesake units worldwide, is not receiving any proceeds from the sale.

After completion of the deal, the selling shareholders will have reduced their ownership stake in Burger King to between 45 percent and 43 percent, depending on the exercise of over-allotments.

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