UAE’s Mubadala revokes offer for Brazil’s Burger King brand owner

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Brazil’s Zamp SA said on Friday that Abu Dhabi state investor Mubadala had revoked its tender offer to purchase a controlling stake in the company, prompting shares in the Brazilian owner of the Burger King brand to fall.

Mubadala had offered 8.31 reais ($1.61) per share to buy a 45.15 percent stake in Zamp this month, up from an original offer of 7.55 reais per share in early August.

The Abu Dhabi investor said in a letter to Zamp it had dropped out after failing to obtain confirmation on whether the deal would imply the termination of Zamp’s franchise and trademark licensing agreements.

The withdrawal came a day after Restaurant Brands International Inc, Popeyes’ and Burger King’s master franchisor, said it could not issue a waiver requested by Mubadala for the transaction to proceed.

Shares in Zamp fell 6.5 percent to 6.80 reais after Mubadala’s withdrawal, adding to a drop of more than eight percent from the previous day’s session.

Analysts at Santander noted Mubadala’s withdrawal could create an overhang in Zamp’s stock, as the Abu Dhabi firm could now sell its existing 4.95 percent stake in the Brazilian company.

“If Mubadala decides to swiftly sell its current shares of Zamp, the impact on the stock could be significant,” they said.

Goldman Sachs analysts view a further pullback as a buying opportunity. They noted that recent macro data could prompt a better-than-expected backdrop for basic consumption in Brazil, which could translate into extra short-term demand for burger.