Aussie buyer in 'heavy discussions' with Burger King

Australian private equity firm Anchorage Capital Partners confirmed this week that it is in discussions to buy the New Zealand arm of takeaway chain Burger King.

Partner Mark Bayliss said the firm was in "heavy discussions" with the Tasman Pacific Foods group which owns the New Zealand master franchise.

Bayliss said until the discussions were concluded nothing more could be said. "We'll know probably in a couple of weeks. It's fairly advanced."

TPF director and shareholder Dennis Jones said he was unable to comment.

There have been reports for some time that TPF was trying to unload the 71 Burger King franchises. This year it sold the 61-outlet Hell Pizza franchise back to its founders, having bought it for $15 million just three years earlier.

TPF had problems with the business, enduring the recession, a revolt by franchisees over the cost of ingredients and other issues, and having to lower prices.

At the time of the Hell sale retail operations director Glenn Corbett, who was also a TPF shareholder, said not all the reports were accurate and the company had been exploring options for investment capital to the future.

Sydney-based Anchorage Capital Partners was formed in 2007, evolving from boutique private equity investor Interbank Capital Partners.