China Investment Corp, KKR Eye Deal To Acquire Yum China

An investor consortium including China Investment Corp., KKR & Co. and Baring Private Equity Asia has expressed interest in buying a majority stake in Yum! Brands Inc.’s China business, according to media reports.

Any potential deal could value Yum! China, which operates more than 7,100 KFC and Pizza Hut restaurants across the country, at US$7 billion to US$8 billion.

Yum could use the proceeds from the sale to fund a dividend and a planned share buyback. It would also reduce exposure to a business with shrinking market share in China.

But the parent company is considering all options, including a minority stake sale or a spinoff of the unit, in addition to selling the business outright.

Singapore’s Temasek Holdings, Primavera Capital and Hopu Investment Management Co. are also reportedly vying for stakes in Yum China.