Date
24 July 2017
KFC owner Yum Brands is reported to be seeking to sell about 20 percent stake in the group's China business. Photo: Bloomberg
KFC owner Yum Brands is reported to be seeking to sell about 20 percent stake in the group's China business. Photo: Bloomberg

Yum said to be in talks with KKR, others on China biz stake sale

Yum Brands Inc. is in talks with KKR & Co. and other private-equity firms about possible sale of nearly 20 percent stake in the restaurant operator’s China business, according to the Wall Street Journal.

A potential deal would value the US firm’s China business at about US$10 billion, the report said, citing people familiar with the matter.

Apart from KKR, Yum Brands — which owns the KFC and Pizza Hut brands — has been in discussions with Baring Private Equity Asia and several Chinese funds, sources were quoted as saying.

It is possible that interested parties could form one bidding consortium or more.

Yum announced the plan to hive off its China operations in October last year.

The move is aimed at insulating the company from turbulence in those operations stemming from food-safety scares, stronger competition and other headwinds, the report noted.

Yum is said to be seeking an anchor investor as a first step in the spinoff process.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe