Montreal, Quebec – January 29, 2026 – A C$60 per share takeover proposal has been submitted for MTY Food Group Inc. (TSX: MTY), placing a C$2.4 billion valuation on the Canadian restaurant franchise operator, according to individuals with knowledge of the discussions.
The proposal delivers a 36% gain above Thursday’s C$44 closing price and represents a notable jump from the C$52-53 per share figures circulating earlier this week. Multiple interested parties are competing to acquire the Montreal-headquartered company, which manages a portfolio of more than 80 restaurant brands.
Industry sources point to both Serruya Private Equity and Recipe Unlimited Corporation as active participants in the sale process, though neither organization has confirmed which submitted the C$60 proposal. The intense competition pushed pricing meaningfully higher following concentrated negotiations over recent days.
Market Response
Trading activity reflected the acquisition news, with MTY shares climbing to C$58.50 during Monday’s session on heavy volume of more than 650,000 shares—approximately four times typical trading levels. The modest gap between the current price and the C$60 proposal reflects standard market dynamics where investors weigh the likelihood of deal completion.
Background of the Sale Process
MTY launched a formal strategic alternatives review months ago to explore pathways to enhance value for its shareholders. The company’s operations span quick-service restaurants, fast-casual concepts, and traditional dining establishments across Canada, the United States, and additional international territories.
The franchise-centric structure generates recurring royalty income while requiring minimal capital deployment—characteristics that appeal to both strategic consolidators and financial sponsors seeking predictable cash flows.
Recent Dividend Action
Adding complexity to the transaction landscape, MTY revealed a 12% quarterly dividend enhancement on January 21, increasing payments from C$0.33 to C$0.37 per share. The announcement arrived amid ongoing acquisition discussions, prompting analysts to question the strategic timing.
Financial analytics firm Simply Wall St observed that the payout increase occurred despite “earnings volatility and balance sheet leverage,” with the dividend “not well covered by earnings.” Nevertheless, the action demonstrates management’s willingness to return capital to investors and signals confidence in the business model’s cash-generation capacity.
Path Forward
Should MTY’s board elect to accept the C$60 proposal, the deal would advance through standard merger protocols: execution of binding agreements, Competition Bureau examination, shareholder ratification, and final closing. Market analysts project a 3-6 month timeline from announcement through completion.
Multiple execution challenges could emerge, including unexpected findings during final due diligence, regulatory obstacles, financing complications, or the arrival of rival proposals. A transaction involving Recipe Unlimited would likely attract heightened regulatory attention given both parties’ substantial Canadian restaurant market presence.
International buyers may encounter Investment Canada Act procedures, introducing additional review layers that could extend timelines.
Value Creation for Investors
The C$60 proposal represents significant wealth creation for MTY investors. Shareholders who accumulated positions at C$38-40 in early January are positioned for returns approaching 50-58%, while longer-term holders have captured even more substantial appreciation.
If consummated at the proposed price, the transaction would establish itself among the most significant Canadian restaurant industry deals in recent memory, demonstrating that premium valuations remain achievable for quality franchise platforms even amid economic headwinds.
Awaiting Official Confirmation
Neither MTY Food Group, Serruya Private Equity, nor Recipe Unlimited has issued public statements confirming the C$60 proposal or providing transaction specifics. Financial market participants are monitoring for an official announcement that would clarify buyer identity, deal mechanics, and expected completion schedules.
The combination of competitive bidding dynamics, strong shareholder returns, and strategic industry consolidation makes this developing situation one of the most closely watched Canadian M&A stories in the restaurant sector.
Company Profile: MTY Food Group Inc. (TSX: MTY) operates as a franchisor of over 80 restaurant brands spanning multiple dining categories across North American and select global markets. The company’s asset-light franchise model generates royalty-based revenue streams with limited capital intensity.
Important Disclaimer: This report provides market intelligence for informational purposes exclusively and should not be interpreted as investment guidance or a securities transaction recommendation. Market conditions and deal terms remain subject to change without notice.