Tim Hortons Inc., Canada’s largest fast-food chain, rose the most in a year after reporting second- quarter profit that topped analysts’ estimates.
The company, known for its coffee and donuts, also said it is selling its 50 percent stake in Maidstone Bakeries to joint venture partner Aryzta AG for C$475 million ($454.2 million) in cash. Tim Hortons said in a statement it has a net investment of about C$75 million in the business.
Chief Executive Officer Donald Schroeder said Aryzta wished to take complete control of Maidstone and Tim Hortons agreed after evaluating tax implications. The two companies signed a joint venture agreement in 2002.
“The business has greater economic value to our partner,” Schroeder said in a telephone interview. “They are involved in North America and their ability to take the product into the grocery line is significantly different than the opportunity available to us. We thought the price was fair.”
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