Gulf-listed Bahrain Family Leisure Company (BFLC) is moving forward with its reverse merger with Dividend Gate Capital (DGC) subsidiary, Truffle Hospitality Holding (Truffle), marking a major consolidation in the hospitality sector. 

Shareholders of BFLC approved the proposed share-swap transaction with DGC’s unit at an Extraordinary General Meeting (EGM) on Monday, following receipt of a no-objection letter from the Central Bank of Bahrain.

The deal will make Truffle a fully owned unit of BFLC, but since this is a share-swap arrangement, Truffle’s parent company, DGC, will end up owning a majority stake in the Bahrain-listed firm.

As part of the transaction, BFLC will issue approximately 13.8 million new shares to DGC to acquire 100% of Truffle. The move will give DGC a 58% stake in the newly expanded entity, while existing BFLC shareholders will hold the remaining 42%.

Listed on the Bahrain Bourse, BFLC operates food and beverage businesses, including franchise restaurant brands and catering operations. Its portfolio brands include Bennigan’s, Cucina and Kazbah Catering.

Truffle Hospitality also operates a portfolio of brands including Hlayel, Goodness, Bombay Bowl and Tikka2Go, among several others.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com