CVC, state-owned fund make $1.65b bid for QSR in Malaysia

Johor Corp. announced that it and CVC would pay RM6.80 per QSR share and RM4 for every KFC share. The offer, coming at a 20% premium to QSR's average price in the three months up to December 13, is higher than the RM6.70 per QSR share that Carlyle offered, and was subsequently rejected.

Considerations of a QSR acquisition has been in play for more than a year, with CVC, Johor Corp. and even KKR cited as potential buyers.

According to Malaysia's Business Times, Johor Corp., which made its bid through its SPV Massive Equity, is the largest shareholder of palm oil producer Kulim Malaysia, which owns 57% of QSR.

If the consortium wins the asset, the plan is to take QSR private and merge the KFC and QSR businesses into a larger regional food retailer. QSR currently owns 50.6% of KFC, and after the transaction, Johor Corp.'s interest in KFC will rise to 51% from 17%, and its stake in QSR will go from 33% to 51%. Meanwhile, CVC will obtain a 49% in KFC and QSR.

QSR and KFC's board is said to be open to competing bids if any were to materialize.

QSR, which listed on Bursa Malaysia in 2004, claims more than 620 KFC restaurants in Malaysia, Singapore, Brunei, Cambodia and India; 270 Pizza Hut restaurants in Malaysia and Singapore; and more than 40 RasaMas restaurants in Malaysia and Brunei.

Fast food plays have been a popular investment destination for private equity in the past year.

 

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• Topics
• Buyouts
• Southeast Asia
• Consumer
• CVC Capital Partners