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Yum China Holdings has remained silent regarding reports that it was not among the bidders in the second round for Jardine Matheson’s restaurant division. This division oversees franchises for KFC and Pizza Hut in Hong Kong, Macau, and Taiwan, according to a company insider.
Jardine Matheson, a conglomerate based in Hong Kong, started exploring a potential sale of its Jardine Restaurant Group last July, with Morgan Stanley serving as an advisor, as reported by Mergermarket. The group manages over 1,000 outlets across various Asia-Pacific markets, including the self-developed PHD pizza brand in Hong Kong, employing approximately 22,000 staff members.
Early non-binding bids, due late last week, reportedly came from Yum China, the Carlyle Group and EQT private equity firms, and Taiwan’s Uni-President Food and Beverage. Mergermarket and LatePost noted these bids. The valuations discussed are around $500 million, with one source estimating an EBITDA multiple of approximately 10 to 12 times.
Sources indicated that Yum China could encounter regulatory obstacles related to its business operations in Taiwan. One mentioned that the Shanghai-based company was contemplating a partnership with a private equity firm to jointly invest and mitigate this issue.
A representative for Jardine Matheson declined to comment on market speculation and rumors, with EQT and Carlyle also opting not to provide statements.
Recently, Carlyle, based in Washington, D.C., acquired rights to operate KFC in Japan beginning in 2024, and earlier last month, it expanded to South Korea.
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