Yum’s main­land stake sale ‘post­poned’: Sources

China Daily (Canada) - - NEWS CAPSULE -

The sale of a stake in Yum! Brands Inc’s Chi­nese main­land busi­ness, which op­er­ates KFC and Pizza Hut eater­ies in the coun­try, has been de­layed, peo­ple with knowl­edge of the mat­ter said.

Po­ten­tial bid­ders in­clud­ing Sin­ga­pore’s state in­vest­ment com­pany Te­masek Hold­ings Pte and Chi­nese pri­vate equity firm Pri­mav­era Cap­i­tal Ltd missed a dead­line ear­lier this month to sub­mit of­fers for a mi­nor­ity stake in the busi­ness, the peo­ple said. The suit­ors held off sub­mit­ting bids af­ter Yum sought to im­pose new terms on the in­vest­ments, said one of the peo­ple, who asked not to be iden­ti­fied be­cause the in­for­ma­tion is pri­vate.

The in­vestors also in­di­cated they dis­agree with Yum’s pro­posed val­u­a­tion of $10 bil­lion for the China unit, the peo­ple said. The sale process has been de­layed by at least sev­eral weeks, ac­cord­ing to one per­son.

Yum last year bowed to ac­tivist pres­sure and agreed to sep­a­rate its Chi­nese main­land busi­ness from the rest of the com­pany, in part to fo­cus on re­viv­ing its US op­er­a­tions.

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