Montreal-based Foodtastic is taking its proposed acquisition of MTY Food Group public after the restaurant giant rejected its approaches. Foodtastic is offering C$43 in cash for each MTY share, a price it says represents a 32 per cent premium over the October 30 closing price. The company first submitted its proposal on October 15 and renewed it five days later.
MTY says its board unanimously rejected the October proposals and formally ended discussions. It says Foodtastic received several extensions during MTY’s strategic review to secure financing and close a transaction. Foodtastic disputes that account. In a November 4 statement, it said the extensions mainly allowed due diligence and accused MTY of having unrealistic expectations about its value. Foodtastic says it remains ready to engage.
The proposed combination would bring together two major Montreal-based restaurant operators. Foodtastic has 30 brands and nearly 1,200 locations across Canada. MTY operates more than 80 banners and nearly 7,000 locations internationally, including Thai Express, Sushi Shop, Cold Stone Creamery and Wetzel’s Pretzels. No deal has been reached. The outcome could reshape the companies behind familiar restaurant names, but for now, both sides remain far apart and could affect restaurant competition across Canada.