In the latest attempt to work around regulatory crackdowns and tighter rules enforced by the US and China, the operator of the Canadian donut-and-coffee chain Tim Hortons will list its China joint venture in New York via a merger with a special purpose acquisition company (SPAC), reports the South China Morning Post.
Tim Hortons China, known simply as Tims in the mainland market, will merge with Silver Crest Acquisition, a so-called blank check company backed by the private equity firm Ascendent Capital Partners, for a listing that values the two-year-old venture at $1.7 billion, according to a regulatory filing. The transaction is expected to complete in the fourth quarter.
Tims is operated as a venture between the private equity firm Cartesian Capital Group and Restaurant Brands International, which owns Tim Hortons as well as the franchises for Burger King and Popeyes. Sequoia Capital China and Tencent Holdings are also investors. The existing shareholders will own about 80% of Tims after the merger with Silver Crest, according to the filings.