Yum China to Receive $460M in Investment
KFC and Pizza Hut owner Yum Brands have confirmed that Primavera Capital and an affiliate of Alibaba will purchase a stake in Yum China for $460 million as part of a planned spinoff of the business.
In the deal, Primavera, a leading Chinese private equity firm, will invest $410 million, and Ant Financial, which runs Alibaba’s Alipay mobile payments platform, will invest a further $50 million, Yum Brands announced last Friday.
Completion of the investments are expected to be announced on October the 31st, with Yum China to begin trading on the New York Stock Exchange as an independent company the next day.
Fred Hu, founder of Primavera and former chairman of Greater China at Goldman Sachs, will become non-executive chairman of the board at the company. He said in a statement:
“We have long admired the Yum China business and are looking forward to collaborating with the board and management to realise the company’s full potential.”