Retail Food Group responds to $100M Crust Pizza sale speculation

Retail Food Group responds to $100M Crust Pizza sale speculation

Struggling franchisor Retail Food Group (ASX: RFG) has received some well-needed positive market sentiment this morning following speculation its business Crust Gourmet Pizzas is in line to be sold.

At 11:30am AEDT shares in RFG were up 22 per cent at $0.36 after the Australian Financial Review (AFR) reported investor PAG Asia Capital was believed to be negotiating the purchase of Crust, Australia's third-largest pizza chain.

The publication indicated the chain was expected to be worth around $100 million.

In an announcement to the market today, RFG claimed to be considering a range of options to reduce debt and did not deny a potential sale could be on the cards.

"The company confirms, as previously announced, that it will be seeking to reduce its debt by various means, including the investigation of the possible sale of assets," the company said.

"That process is ongoing, although no formal binding agreement has been reached with any buyer at this stage in respect of any of RFG's assets.

"Insofar as the amount for the sale of Crust Gourmet Pizzas is speculated in the AFR article, that amount exceeds RFG's expectations as to the sale price for that asset if it was to be sold as part of that process."

The news comes just over a month after Richard Hinson resigned as CEO of RFG just six months into the job. 

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