QSR Brands (M) Holdings Bhd’s owners, whose company control the operation of KFC and Pizza Hut in the region, are considering selling the company. This comes after they initially rejected a public offering earlier this year.
The Malaysian company major shareholders, that includes private equity firm CVC Capital Partners, are working closely with an adviser. This is to attract interest of potential buyers for a controlling stake at QSR, according to a source.
The source who wish to remain unidentified, has also noted that a deal could value QSR at RM6 billion (US$1.4 billion).
QSR’s backers, state-owned Johor Corp. and pension fund Employees Provident Fund, have also reportedly asked for non-binding offers to be submitted before November ends.
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The insider also added that the shareholders have decided to pursue a stake sale instead of reviving a potential listing as previously planned. This is because of weak local markets leading to a lack of initial public offering. According to data compiled by Bloomberg, Malaysian IPOs have just raised $452 million this year, with only a single deal going more than $100 million.
Malaysia is currently the worst performer in the Asian exchange after a 5.7% drop in benchmark gauge this year. Only Laos and Mongolia have posted worse returns.
The company currently operates 830 KFC outlets in Malaysia, Singapore, Brunei, and Cambodia. Along with KFC, the company also operates more than 470 Pizza Hut restaurants in Malaysia and Singapore. It would be interesting to see whether a change in ownership will have any impact with the stores’ operations.
Source: Bloomberg.
