AVCJ

CVC-led consortium completes $1.7b KFC take-private

  • Andrew Woodman
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A CVC Capital Partners-led consortium has completed a MYR5.12 billion ( $1.7 billion) privatization of Malaysia's KFC franchise and its parent company.

According to regulatory filings with Bursa Malaysia, shares in QSR Brands and subsidiary KFC Holdings Malaysia will cease trading on Monday to facilitate capital repayment.

CVC teamed up with Johor Corp (JCorp) and the Employees Provident Fund (EPF) to buy KFC and QSR, with the transactions receiving shareholder approval last November.

All shareholders are to receive MYR6.80 per share and MYR3.79 per warrant. The price represents a 20% premium to QSR's average price in the three months leading up to December 2011, when the offer was first put on the table.

QSR controls 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.

The take-private represents one of the largest PE deals in Southeast Asia in recent years.

Others have tried and failed to pick up QSR. According to Sigit Prasetya, CVC's managing partner for Southeast Asia, the bid was successful because the private equity firm partnered with Kulim Malaysia - the Johor-controlled largest shareholder in QSR and KFC - rather than buy out its interest.

"Deals like this are difficult to execute and we are grateful to all parties for their support," Prasetya told AVCJ last month.

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