Brocker.Org: McDonald’s sells most of China, HK companies to CITIC, Carlyle for $two.1 b… – Reuters


By Elzio Barreto

HONG KONG McDonald’s Corp (MCD.N) has agreed to provide a bulk stake in its China and Hong Kong companies to point out-backed conglomerate CITIC Ltd (0267.HK) and Carlyle Group LP (CG.O) for up to $two.1 billion, element of its initiatives to swap to a much less funds-intensive enterprise design.

The deal caps months of negotiations involving the quickly-foodstuff chain, non-public fairness firms including Carlyle and TPG Funds Administration LP [TPG.UL] as very well as many Chinese suitors.

McDonald’s initially preferred to increase up to $three billion from the sale of the enterprise, but afterwards decided to retain a minority stake to benefit from publicity to future progress in China, a person with immediate expertise of the strategies beforehand told Reuters.

Hong Kong-listed CITIC Ltd will personal about 32 p.c of the enterprise, with CITIC Funds, an affiliate corporation that manages non-public fairness resources and other choice property, keeping an additional 20 p.c.

Carlyle will management 28 p.c of the enterprise, although McDonald’s (MCD.N) will retain a 20 p.c stake, the corporations stated.

The quickly foodstuff chain corporation operates owns most of its two,four hundred places to eat in mainland China as very well as around the 240 it has in Hong Kong. It strategies to include 1,500 extra more than the next 5 decades in both equally places.

McDonald’s stated in March it was reorganizing operations in the location, on the lookout for strategic partners in China, Hong Kong and South Korea.

(Reporting by Elzio Barreto Further reporting by Rushil Dutta in Bengaluru Editing by Gopakumar Warrier and Edwina Gibbs)