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CVC in advanced talks to acquire majority stake in restaurant chain South Beauty

30 Oct 2013

china beijing_sqPrivate equity firm CVC is reportedly nearing a deal to buy a majority stake in Chinese restaurant chain South Beauty Investment.

The firm is currently in advanced talks to buy South Beauty for $300m, valuing the company at around 8.5 times its EBITDA, said Reuters, citing sources with knowledge of the matter. Chinese private equity firm CDH Investments acquired a stake in South Beauty for $29.3m in 2008 and plans to exit its investment via a sale to CVC, said the people.

CVC is expected to acquire a 69 per cent stake with founder Zhang Lan retaining a 31 per cent interest in the business.

South Beauty, which is popular among China’s business and political elite, had previously planned to float on the Hong Kong exchange and hired banks to lead the IPO. However, it has opted for a sale to a private equity buyer due to unfavourable market conditions.

Back in July AltAssets reported that CVC secured a €200m commitment from the New York State Teachers’ Retirement System for its latest buyout fund.

The firm had raised €10.2bn as at July, expecting to close the vehicle on €10.9bn this year.

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