Yum Offers to Buy Chinese Restaurant Chain |
| Wall Street Journal - May 13, 2011 |
Yum Brands Inc. announced a formal bid to acquire Little Sheep Group Ltd. in a deal that values the Chinese restaurant chain at more than $860 million, a purchase that would mark a significant expansion for the U.S. company in its most profitable market.
Yum and Little Sheep said in a joint statement Friday that the offer to Little Sheep shareholders would be 6.50 Hong Kong dollars, or about 84 U.S. cents, in cash per share to increase Yum's stake in the company to 93.2% from 27.2%. Yum would pay US$570.5 million to US$586.3 million for that additional two thirds stake, depending on whether certain share options in Hong Kong-listed Little Sheep are exercised, the statement said.
Yum has built one of the most successful operations of any foreign company operating in China, with nearly 4,000 KFC, Pizza Hut and other restaurant outlets in the country. China accounted for 37% of Yum's $2.4 billion in world-wide revenue in the quarter ended March 19 and 54% of its $401 million in operating profit in the period.
Read Full Article from Wall Street Journal
- Posted: 2011-05-13 08:36:56
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