AmRest has finalized the agreement to sell 97 Applebee’s restaurants for US$ 91.6m (including adjustments) to the Apple American Group. AmRest is also likely to receive US$ 3.2m for two more restaurants if they are ready. After the transaction AmRest will operate three restaurants in the US. Including adjustments total price for 99 restaurants is 5% below US$100m guided in June 2012. Our view: We expect a mildly positive trading impact today. AmRest acquired the Applebee’s brand for PLN 120.1m in 2008, while the transaction implies a price of PLN 300m for 99 restaurants. After the transaction the firm’s net debt/EBITDA ratio is likely to reach 2.0x in 2012. AmRest is now likely to concentrate on higher growth prospects operations such as La Tagliatella and there is speculation the firm might acquire KFC and Pizza Hut operations in Turkey. The firm announced in June 2012 that net proceeds from the Applebee’s transaction should reach US$ 82m, thus the gain on the transaction might reach some PLN 130m to be booked in 4Q12 if if two additional restaurants are also disposed.