SAO PAULO (Reuters) – Brazilian restaurant chain operator Zamp has agreed to buy the rights to operate the Starbucks (NASDAQ:) brand and some stores in the South American country, the company said on Thursday, sending its shares soaring.
Zamp, controlled by Abu Dhabi state investor Mubadala, operates Burger King and Popeyes restaurants in Latin America’s largest economy and said in February it was negotiating a deal with Starbucks.
In a securities filing, the firm said a deal worth 120 million reais ($22.7 million) was signed with SouthRock, which owns the rights and assets and has been under bankruptcy protection since last year.
Zamp shares, traded in Sao Paulo, jumped 19.4% before closing up nearly 10.2%.
It is not yet known exactly how many of Starbucks’ more than 100 stores in the country will buy Zamp, the company said.
As required by SouthRock’s bankruptcy proceedings, the deal will be completed through a competitive process during which Zamp will have the right to match potentially higher bids, according to the documents.
Zamp said the deal is subject to approval from Brazil’s antitrust watchdog CADE and the court overseeing SouthRock’s bankruptcy.
A final agreement also needs to be reached with Starbucks, which has so far agreed to an initial deal allowing Zamp to explore the brand and develop the coffee chain’s operations in Brazil.
A Starbucks spokesperson confirmed that the company is “in discussions with Zampa to directly operate Starbucks retail cafes throughout Brazil.”
SouthRock confirmed the agreement is pending approval, adding that it remains committed to pursuing a court-supervised reorganization to restructure and restart the growth of its business.
($1 = 5.2991 reais)