Dane Bowler • 12 Comments
Mon, Apr. 18, 10:12 PM
- A Chinese group with backing from the country's sovereign fund is expressing interest in taking majority control of the in-country business of Yum Brands (NYSE:YUM), Bloomberg reports.
- That is an $8B-$10B business that runs more than 7,100 KFC and Pizza Hut restaurants in China, and Yum has been looking at some kind of spinoff.
- In March, Dow Jones reported the company was thinking of selling a 19.9% stake in the unit that would value it at $10B. Private equity funds and several Chinese funds were floated as possible buyers at the time.
- Updated 10:25 p.m.: KKR and Baring Private Equity Asia are part of the group, which is doing due diligence for a deal that could take up to 100% of Yum China -- not just a minority stake -- and value it at $7B-$8B, cash that Yum could use for dividends and buybacks. Singapore's state fund and a Chinese P-E firm are also pushing for stakes.
- Now read Yum Brands Spin-Off Will Cause The Stock To Soar »
May 13, 2011, 4:37 AM
Yum Brands (YUM) offers up to HK$4.56B ($586M) to raise its stake in Little Sheep, the operator of a popular Chinese hot-pot chain, to 93.2% from 27.2%. Yum is offering a 30% premium to Little Sheep's close yesterday as it tries to pull ahead in China's highly fragmented restaurant industry. (also)| May 13, 2011, 4:37 AM