Chanticleer Holdings announces plans to sell South Africa Hooters
Chanticleer Holdings, Inc. owner, operator, and franchisor of multiple nationally recognized restaurant brands has announced that it has entered in to a non-binding letter of intent for the sale of its South Africa Hooters locations.
The purchase price is $1,065,000 which is expected to result in net proceeds of approximately $360,000 to Chanticleer. Net working capital of the Company’s consolidated financial statements is expected to improve by approximately $750,000 - $900,000 after the sale.
Chanticleer will retain a 50% interest in the gambling portion of the South Africa Hooters business. Estimated closing is by the end of September.
Patrick Harkleroad, the Company’s Chief Financial Officer, commented, “We’re pleased to have entered into a letter of intent for the sale of our five South Africa Hooters locations. The benefits of the transaction are numerous, including a cash infusion, improving working capital and alleviating some financial reporting complexities associated with foreign currency translation. Importantly, we have retained a 50% interest in the gaming side of the business which should be highly profitable going forward.”
Harkleroad continued, “The monetization of this asset will lead to improved operational efficiencies as we focus on our core better burger operations.”
The letter of intent is subject to completion of due diligence and final material definitive agreements.