BRIEF: Yum China among bidders for KFC, Pizza Hut operator in Hong Kong, Taiwan

Restaurant operator Yum China Holdings Inc. (YUMC.US; 9987.HK) and private equity giant Carlyle Group (CG.US) are among the parties interested in buying Jardine Matheson’s (JARD.SI) restaurant unit, which runs the KFC and Pizza Hut fast food chains in Hong Kong, Macao and Taiwan.

Others interested in buying Jardine Restaurant Group include Taiwanese food giant Uni-President (1216.TW), as well as other private equity bidders, Reuters reported this week, citing two sources with knowledge of the sale. Based in Hong Kong, the unit could sell for about $400 million, the sources said. It operates about 1,000 KFC and Pizza Hut restaurants in Hong Kong, Macao and Taiwan, as well as Vietnam and Myanmar.

The unit generates between $35 million and $40 million in annual earnings before interest, taxes, depreciation and amortization (EBITDA), the report said, adding that non-binding bids are due this week.

Carlyle last December agreed to acquire KFC Korea. It was also part of a group that bought a controlling stake in McDonald’s (MCD.US) China operation in 2017, and later sold that in 2023. Yum China, meanwhile, is already the master franchisee for the KFC and Pizza Hut brands in Mainland China, after its 2016 spinoff from Yum Brands (YUM.US), which owns the two brands.

By Doug Young

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