Yum! Brands, owner of KFC and Pizza Hut, said it will sell shares for a total 460 million dollars of its Chinese business to Primavera Capital Group and Ant Financial Services Group, a subsidiary of Alibaba, reported Bloomberg.
Primavera and Ant will invest respectively $410 million and $50 million in the separation of Yum China Holdings, according to a statement from Friday. The deal was first reported by The Wall Street Journal. The founder of Primavera Fred Hu – former chairman of Goldman Sachs, responsible for China, will become chairman of Yum China.
Last year, Yum submitted to pressure from activists and negotiated the separation of the Chinese business into a separate public company after a long decline in sales as a result of scandals regarding food safety. Yum’s leading role in the industry of fast food, which it had itself helped to build, is deteriorating because of Chinese consumers who increasingly care about their health and are looking for healthier options and local grocery chains.
So far there are no comments on the topic from Primavera and Ant.