CVC consortium wins first approval for Malaysia KFC bid

Around 99% of shareholders in KFC Holdings (Malaysia) voted in favor of the deal, which values the company at MYR4 per share. The bid for KFC Holdings and QSR Brands was made in December by CVC and the investment arm of Malaysia's Johor state. Employee Provident Fund joined the consortium in May.

Despite the deal getting approval from shareholders at KFC holdings, it will still need backing from QSR shareholders when they go to vote today.
Several shareholders both companies previously indicated they would oppose the deal as the year-old offer undervalues the assets.

QSR shareholders are being offered MYR6.80 per share as part of the deal. This represents a 20% premium to QSR's average price in the three months up to December 13 last year, when the offer was first put on the table. The bid is also higher than the MYR6.70 offer made by The Carlyle Group a year previous, which was rejected.

Both firms' share prices remain approximately equal to last December's bid price. The consortium requires 75% backing from QSR's shareholders if it is to proceed with the transaction. Johor Corporation is the largest shareholder in both KFC and QSR but is not eligible to vote because it made the offer.

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.

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• Topics
• Southeast Asia
• Buyouts
• Consumer
• Buyout
• GPs
• Malaysia
• CVC Capital Partners