Mubadala wants to take Burger King Brazil, but the prize looks like a promotion for the Whopper

The takeover bids started on the wrecked stock market — but the first one looks pretty timid.

Mubadala – the sovereign wealth fund of the United Arab Emirates – has just launched a public offer to buy 45.15% of the capital of Burger King Brasil at a price of R$ 7.55 per share.

The price is a premium of 21.6% over the screen price and 31.1% over the weighted average of the last 30 trading sessions, and 17.8% compared to the weighted average of the last 90 trading sessions.

“Where are the real petrodollars?” asked a manager bought on paper. “It is difficult to succeed in a voluntary takeover bid with this award in a role that is at historic lows and very close to cyclical recovery.”

The company closed Friday with a value of R$ 1.68 billion on the Stock Exchange, with shares at R$ 6.22. During the pandemic, in December 2020, the capital increase was BRL 10.80. When Vinci proposed the merger of BKB with Domino’s, the implied valuation of BKB was R$11.12 per share.

Mubadala already has 5% of the company’s capital, and, if the offer is successful, it would control BKB with 50.1%.

BKB said its board is evaluating the terms of the proposal and will issue a prior opinion within 15 days.

BKB’s largest shareholders are Atmos Capital, with 10%; the RBI with 10%; Morgan Stanley with 9.35% and Vinci Partners with 6.4%.

JP Morgan is advising Mubadala, which is working with Trindade Advogados.

Geraldo Samor and Pedro Arbex