January 23, 2018 / 11:40 AM / a month ago

BRIEF-Cara Operations To Merge With Keg Restaurants Ltd

Jan 23 (Reuters) - Cara Operations Ltd:

* CARA OPERATIONS TO MERGE WITH KEG RESTAURANTS LTD.

* CARA OPERATIONS LTD - DEAL FOR ‍AGGREGATE PURCHASE PRICE OF $200 MILLION​

* CARA OPERATIONS LTD - CARA AND KRL HAVE AGREED TO MERGE PURSUANT TO TERMS OF A BINDING LETTER OF INTENT

* CARA OPERATIONS LTD - CARA WILL FUND CASH PORTION OF PURCHASE PRICE PAYABLE AT CLOSING BY DRAWING ON ITS EXISTING CREDIT FACILITY

* CARA OPERATIONS LTD - ‍INTENDS TO CHANGE ITS CORPORATE NAME TO REFLECT NEW BUSINESS COMPOSITION FOLLOWING CLOSING​

* CARA OPERATIONS - FUND WILL REMAIN IN ITS CURRENT FORM AND WILL CONTINUE TO RECEIVE ROYALTIES FROM KEG RESTAURANTS OPERATED BY KRL FOLLOWING MERGER

* CARA OPERATIONS LTD - DEAL FOR ‍COMPRISED OF $105 MILLION IN CASH AND 3.8 MILLION CARA SUBORDINATE VOTING SHARES​

* CARA OPERATIONS LTD - ‍ NOTWITHSTANDING MERGER, KEG WILL CONTINUE TO OPERATE AS IT HAS PREVIOUSLY UNDER AISENSTAT‘S LEADERSHIP​

* CARA OPERATIONS LTD - PURCHASE PRICE OF $200 MILLION COMPRISED OF $105 MILLION IN CASH AND 3.8 MILLION CARA SUBORDINATE VOTING SHARES

* CARA OPERATIONS LTD - ‍TRANSACTION IS EXPECTED TO BE IMMEDIATELY ACCRETIVE TO CARA‘S ADJUSTED DILUTED EPS​

* CARA OPERATIONS LTD - TRANSACTION IS EXPECTED TO BE IMMEDIATELY ACCRETIVE TO CARA‘S ADJUSTED DILUTED EPS

* CARA OPERATIONS-MAY BE REQUIRED TO PAY ADDITIONAL $30 MILLION OF CASH UPON ACHIEVEMENT OF FINANCIAL MILESTONES WITHIN FIRST 3 FISCAL YEARS FOLLOWING CLOSE

* CARA OPERATIONS LTD - CARA AND KRL HAVE AGREED TO MERGE PURSUANT TO TERMS OF A BINDING LETTER OF INTENT

* CARA OPERATIONS LTD - ‍TRANSACTION WAS ALSO UNANIMOUSLY APPROVED BY BOARD OF DIRECTORS OF KRL​

* CARA OPERATIONS LTD - DAVID ‍AISENSTAT WILL REMAIN CEO OF KRL WHILE OVERSEEING THREE ADDITIONAL CARA BRANDS​

* CARA OPERATIONS LTD - ‍BILL GREGSON WILL REMAIN AS PRESIDENT AND CEO OF CARA AND WILL REMAIN AS CHAIRMAN OF CARA BOARD OF DIRECTORS​ Source text for Eikon: Further company coverage:

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