KFC owner Yum in talks with KKR over China unit stake sale
- Published
Yum Brands, the owner of KFC, Taco Bell and Pizza Hut, is in talks with KKR and other financial firms about the sale of a stake in its China business.
The US firm could reportedly sell up to 20% of its Chinese operations, valuing the unit at about $10bn (£7bn).
Last October, it announced plans to spin off and list its China division by the end of 2016.
The shake-up is set to be the biggest since Yum was split from PepsiCo two decades ago.
However, talks are said to be in their early stages and a deal is not guaranteed.
"We continue to make good progress since we announced the transaction separating Yum and Yum China," a Yum spokesperson said in a statement.
"We will provide updates on the transaction at appropriate times and we won't comment on rumours or speculation."
Yum has an overall market value of $32bn, but gets more than half of its profits from the China business.
However, its earnings from the mainland have been hit in recent years by a food safety scandal involving a meat supplier, as well as increased competition.
Shares of Yum rose by nearly 2% in US trading following the reports about the sale talks.
- Published21 October 2015