Yum in talks with KKR, others to sell stake in China unit: WSJ
Yum Brands Inc (YUM.N) is in talks with private equity company KKR & Co LP (KKR.N) and others about a possible sale of a nearly 20 percent stake in its China business, the Wall Street Journal reported, citing people familiar with the matter.
The stake values the China business at about $10 billion, the report said. (on.wsj.com/1Rl7rtL)
Shares of the owner of the KFC and Pizza Hut chains were up 1.6 pct at $80.24 in afternoon trading on Wednesday.
“We continue to make good progress since we announced the transaction separating Yum and Yum China into two,” a Yum Brands spokeswoman said, adding that the company would provide updates on the transaction at appropriate times.
The parties exploring offers include KKR, Baring Private Equity Asia and several Chinese funds, the Journal reported, adding that Yum appeared to be intent on selling a 19.9 percent stake to avoid a big tax bill.
The company, which also owns Taco Bell, plans to spin off Yum China by the end of 2016 and list it on the New York Stock Exchange, and possibly in Hong Kong. Read more