The reports state that the talks could result in a share swap deal, with Sapphire Foods India getting merged into Devyani International
In a move directed towards creating synergies, Yum! Brands Inc, the American owner of KFC and Pizza Hut, is mediating a merger between its Indian franchisee partners, Devyani International and Sapphire Foods India, as per the media reports.
The reports highlighted that the talks could result in a share swap deal, with Sapphire Foods India getting merged into Devyani International. As a result, DIL could acquire the franchisee rights of Pizza Hut and KFC from Sapphire Foods, the reports pointed out.
On an alternative front, all of KFC’s franchisee stores in the country could be consolidated under DIL, as per the reports, which added that a 1:3 share swap ratio is being discussed. As part of the deal, Sapphire shareholders would get their hands on one share of DIL for every three owned, the reports explained.
As far as the size is concerned, the reports emphasised that DIL’s market capitalisation currently stands at Rs 19,935.61, as compared to Sapphire Foods’ Rs 10,313 crore. The reports noted that the discussions are being spearheaded by DIL, which runs over 2,030 stores across India, Nepal, Nigeria and Thailand. On the other hand, Sapphire runs 963 KFC, Pizza Hut and Taco Bell restaurants across India and Sri Lanka as of 31 March 2025, as per the reports.
With consumers cutting back on discretionary spending, the companies are witnessing a slowing growth. DIL is the exclusive franchisee for Costa Coffee in India and owns brands like Cream Bell ice cream, Vaango, the reports noted.
