McDon­ald’s gets bids for store sales

China Daily (Canada) - - LIFE - By REUTERS

In­dus­try 4.0 can only be suc­cess­ful when an enterprise has a solid man­u­fac­tur­ing ca­pac­ity, said Cao De­wang, chair­man of Fuyao Group, the largest au­to­mo­tive glass sup­plier in China.

McDon­ald’s“In­dus­try 4.0 is quite Corp a pop­u­larhas re­ceived con­cept moreat the than mo­ment.half a dozen But my bids con­cern­for it­sis that planned man­u­fac­tur­erssale of Chi­ne­se­may face main­landthe risk andof failure Hong if Kongthey don’t stores, have in­cludinga strong man­u­fac­turingof­fers from Bei­jing ca­pac­ity. Tourism China’s Group, man­u­fac­tur­ing San­power in­dus­tryGroup an­dis still China not Na­tion­alvery ad­vanced,” Chem­i­cal­said Cao. Cor­po­ra­tion The in vi­siona deal of worth In­dus­try about 4.0$3 bil­lion,is for “cy­ber-phys­i­calpeo­ple fa­mil­iar pro­duc­tion­with the mat­ter sys­tems” said. in which smart em­bed­ded McDon­ald’s de­vice­sis work of­fer­ing to­geth­era 20-year wire­lessly master di­rectly or fran­chise through agree­ment­the in­ter­net to of buy­ers things. as It par­tis seenof the deal, but has placed re­stric­tions that have dis­cour­aged some pri­vate eq­uity firms from par­tic­i­pat­ing in the process, the peo­ple added.

Still, some global buy­out firms in­clud­ing Bain Cap­i­tal, TPG Cap­i­tal and Car­lyle Group have en­tered the auc­tion with a view to team up with some of the Chi­nese strate­gic bid­ders, they added.

Other bid­der­swhowere pre­par­ing to place first-round bids ahead of Mon­day’s dead­line in­clude Bei­jing Cap­i­tal Agribusi­nessGroupandGreenTree Hos­pi­tal­ity, the peo­ple said. It was not im­me­di­ately clear if the last two suitors pro­ceeded with the bids.

Oak Brook, Illi­nois-based McDon­ald’s has hired Mor­gan Stan­ley to run the sale of about 2,800 restau­rants in the Chi­nese main­land, Hong Kong and South Korea. The sale in South Korea is be­ing run sep­a­rately and it was not known if the same par­ties have ex­pressed in­ter­est in the South Korean sale, the peo­ple added.

The main­land and Hong Kong busi­ness had about $200 mil­lion in earn­ings be­fore in­ter­est, de­pre­ci­a­tion and amor­ti­za­tion, and could be sold for about 15-16 times its core earn­ings, tak­ing the deal value to about $3 bil­lion, one of the peo­ple said.

ChemChina and San­power of­fi­cials were not avail­able to com­ment im­me­di­ately, while Bei­jing Tourism Group said it did not know about the mat­ter.

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