Domino’s Pizza Enterprises has denied media reports claiming it had received a takeover bid from private equity firm Bain Capital.

The ASX-listed company is the largest Domino’s franchisee outside the US. It operates more than 3500 stores in 12 markets, including Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Cambodia, Taiwan, Malaysia, and Singapore.

The Australian Financial Review previously reported that Bain Capital was proposing a deal to acquire all or part of Domino’s Pizza Enterprises. The new agency cited people briefed on the matter, who spoke in anonymity due to the confidential nature of the discussions.

Any deal could be worth up to $4 billion, according to the sources.

In light of the speculation, shares of Domino’s Pizza Enterprises surged 23 per cent to $19 a piece in early trade before trading was halted on Tuesday.

In a response to the ASX price query the same day, the company confirmed that, as far as it is aware, it has not received any proposal from Bain Capital or had any communication with the private equity firm.

The company’s shares lost the early gains following the announcement and ended up only 3.7 per cent higher at $16.02.  

In August, Domino’s Pizza Enterprises posted a loss of $3.7 million for the year, its first annual loss in 20 years. This was due to one-off restructuring costs of $121 million following the closures of 312 stores.

The company’s network sales were down 0.9 per cent for the year.