Sept 2 Yum Brands Inc, owner of KFC and
Pizza Hut, will sell a stake in its China operations to a
Chinese investment firm and an affiliate of Alibaba Group
Holding Ltd as part of a planned spinoff of the
business, the Wall Street Journal reported.
Primavera Capital and Ant Financial Services Group, the
financial affiliate of Alibaba, will buy a combined $460 million
stake in the Yum China spinoff, the Journal reported, citing
people familiar with the situation. (on.wsj.com/2bHredl)
Both companies will receive warrants to buy 2 percent stakes
in Yum China twice at valuation thresholds of $12 billion and
$15 billion, the report said.
Yum Brands plans to spin off its restaurants in China, which
account for about half of the company's total sales, by the end
Primavera Capital declined to comment. Yum Brands and
Alibaba were not immediately available for comment.
(Reporting by Anya George Tharakan in Bengaluru; Editing by