A special purpose vehicle (SPV) formed by the Asia Pacific arm of London-based private equity firm CVC and the investment unit of the Malaysian state of Johor has clinched the MYR5.24bn ($1.65bn) buy-out of KFC Holdings and QSR Brands, in a deal which could be the largest ever private equity-backed transaction in Malaysia.
According to a recent stock exchange filing, the SPV, known as MESB, offered MYR6.80 ($2.13) per share for QSR, which owns KFC and Pizza Hut in Malaysia, representing a 13 per cent premium to the group’s last market price of MYR6.00. The bid trumped a MYR6.70 offer from global buy-out giant Carlyle.
Johor Corp, which already holds an indirect interest in KFC and QSR, established MESB with CVC so that it could also bid for the assets and liabilities of KFC Holdings at MYR4.00 per share, a 17 per cent premium to the company’s last trading price. MESB is 49 per cent owned by a subsidiary of CVC Capital Partners Asia III and 51 per cent owned by a subsidiary of Johor Corp, according to the filing.
The offer is CVC’s second attempt to wrest control of QSR following a planned MYR5.60 joint bid with Malaysian businessman Halim Saae, which was eventually called off. Excluding warrants, Reuters estimates that QSR and KFC are valued at about MYR2.06bn and MYR3.17bn respectively.
Last month CVC Asia Pacific agreed to sell shoe repair company Mister Minit to Japanese buy-out firm Unison Capital, after two unsuccessful attempts to offload the business in the last three years.
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