According to the Hong Kong-listed Chinese hotpot restaurant chain Little Sheep, the American restaurant group Yum plans to invest HKD493 million to acquire a 19.99% stake in Little Sheep.
Yum, the owner of restaurant brands such as Taco Bell, Pizza Hut, and KFC, will become the second largest shareholder of Little Sheep after the transaction is completed.
Little Sheep said its strategic shareholders, the British private equity firm 3i Group and Prax Capital Fund, had signed an agreement to sell the whole of their 13.92% stake in the company to Yum. In addition, Little Sheep and its chairman Zhang Gang will sell an additional 6.07% stake to the American restaurant group.
The price of this transaction is reported to be HKD2.4 per share and Yum will acquire a total number of 205.5 million shares for HKD493 million.
Little Sheep added that the transaction between 3i, Prax and Yum is expected to be completed by March 31, 2009.