Franchise Brands confirms potential acquisition

Franchise Brands confirmed on Wednesday that it is in advanced stages regarding a potential acquisition that would constitute a reverse takeover under AIM rules.

Franchise said it has entered into an exclusive agreement regarding the potential acquisition, but any transaction remains subject to a number of factors, including completing due diligence and negotiations to the company's satisfaction, so there can be no certainty that a final binding agreement will be reached.

The multi-brand international franchisor said the potential acquisition would be consistent with it strategy, as outlined at the time of its recent IPO, to pursue selective deals of complementary franchise businesses that could benefit from its central services.

In accordance with AIM rules, Franchise Brands' shares will be suspended from trading with immediate effect until either publication of the admission document or announcement of the transaction not proceeding.

The group's audited financial results for the year to the end of December are expected to be announced shortly.