CJ Group says submitted letter of intent to buy McDonald's S.Korean unit (updated)

CJ

29/06/2016 01:42

(Adds background) 
    SEOUL, June 29 (Reuters) - South Korea's CJ Group, a 
food-to-entertainment conglomerate, said on Wednesday it has 
submitted a letter of intent to buy McDonald's Corp's  MCD.N  
South Korean unit, adding that details have not been decided.  
    Korean Economic Daily newspaper said the deal could fetch 
300 billion won ($256.86 million) to 500 billion won, citing 
investment banking sources. 
    McDonald's Corp, a U.S. fast food company, announced in 
March it was reorganising its Asian operations by bringing in 
partners who would own the restaurants within a franchise 
business.  
    In South Korea, McDonald's faces growing competition from 
domestic rivals like Lotte Group's Lotteria and coffee shop 
chains like Starbucks.   
    McDonald's has hired Morgan Stanley  MS.N  to run the sale 
of about 2,800 restaurants in China, Hong Kong and South Korea, 
Reuters previously reported.  
    It has received more than half a dozen bids for its China 
and Hong Kong stores, including offers from Beijing Tourism 
Group, Sanpower and ChemChina, in an auction that could fetch up 
to $3 billion, people familiar with the matter said. 
    The sale in South Korea is being run separately and it was 
not known if the same parties had expressed interest in that 
sale, the people added. 
    McDonald's received first-round bids on June 20 and will 
draw up a shortlist of bidders for the next round in the coming 
weeks. 
($1 = 1,167.9600 won) 
 
 (Reporting by Hyunjoo Jin; Additional reporing by Joyce Lee; 
Editing by Stephen Coates) 
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters 
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net)) 
 
Keywords: MCDONALDS SALE/SOUTHKOREA