Tim Hortons is set to go public in China under a merger deal with blank-check company Silver Crest Acquisition Corp – to help fund its ambitious plan to roll out more than 2750 stores there in five years.
The deal, which will give Tim Hortons China a Nasdaq listing, is expected to close later this year. The value of its China business is estimated to reach about US$1.7 billion once the merger is closed.
Existing shareholders, including Tencent Holdings and Sequoia Capital, will own 80 per cent of the shares after the deal.
Tim Hortons made its Chinese debut with its first store in Shanghai in 2019. The chain currently operates 199 locations across the country and plans to double the number by the end of this year, according to its regulatory filings.
“We will have nearly 400 units by the end of this year, opening one every 36 hours,” said Yongchen Lu, CEO of Tim Hortons China, in the company’s investor presentation video filed with the US Securities and Exchange Commission.
Restaurant Brands said the merger deal, which still requires regulatory approval, will allow Tim Hortons to benefit from China’s fast-emerging coffee market.