ALBAWABA – Carlyle Group Inc. and Trustar Capital are planning to sell $4 billion in shares of their stakes in McDonalds China (McDonald’s Corp.), which operates both in Hong Kong and mainland China, news agencies reported Thursday.
Bloomberg sources have confirmed that the shareholders are planning to raise the amount from wealth funds to buy part of their shares in the company.
A private equity firm would set up a new vehicle to help with the exist of some current investors, allowing them to raise fresh capital, according to the Bloomberg report.
"The company's shareholding structure will not change. All stakeholders are highly aligned on the process," McDonald's China said in an emailed response to Reuters.
"We will continue to leverage the capital and other resources from CITIC, Carlyle, and McDonald’s Corp to achieve the future milestone of 10,000 stores," it said.
McDonald's currently has 5,400 stores in China, Reuters underscored.
Shareholders have agreed to the exit plan, and the asset managers have approached Mubadala Investment and GIC Pte to finalize a deal, the report said. Adding that asset managers aim to reach an agreement with investors in the fourth quarter of this year..
According to Bloomberg, the plan values the business at up to $10 billion, including debt.
Carlyle declined to comment. GIC and Trustar did not immediately respond to a Reuters request for comment. Trustar Capital is a private equity affiliate of CITIC Capital.
