‘Reza Food near deal on McDon­ald’s out­lets in Malaysia, Sin­ga­pore’

The Sun (Malaysia) - - SUNBIZ -

HONG KONG/SIN­GA­PORE: McDon­ald’s Corp is near­ing a deal to sell 20-year fran­chise rights for its Sin­ga­pore and Malaysia out­lets to Saudi Ara­bia’s Reza group, in a trans­ac­tion es­ti­mated at up to US$400 mil­lion (RM1.7 bil­lion), peo­ple fa­mil­iar with the mat­ter said.

Reza Food Ser­vices Co Ltd, which owns and op­er­ates McDon­ald’s restau­rants in the western and south­ern re­gion of Saudi Ara­bia, has tapped Malaysian bank CIMB to fi­nance the deal, said two of the sources, who de­clined to be iden­ti­fied as the deal has not been pub­licly an­nounced.

CIMB de­clined to com­ment, while there was no im­me­di­ate re­sponse from McDon­ald’s. Reuters was not im­me­di­ately able to reach Reza for a com­ment.

The deal was ex­pected to be com­pleted by the end of the year, one per­son fa­mil­iar with the trans­ac­tion said.

McDon­ald’s has about 120 restau­rants in Sin­ga­pore and about 260 in Malaysia. The move is in line with the com­pany’s re­or­gan­i­sa­tion of its Asian op­er­a­tions, bring­ing in part­ners as it switches to a less cap­i­tal-in­ten­sive fran­chise model. – Reuters

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