KFC Holdings Japan receives $863 mln offer from Carlyle-backed fund (updated)

KFC Holdings Japan

21/05/2024 05:55

(This May 20 story was updated on May 21 to add share price
movement, background and deal size)
       TOKYO, May 20 (Reuters) - Fast food operator KFC
Holdings Japan  9873.T  said on Monday that a Carlyle
Group-backed fund launched a tender offer for its shares in a
deal worth 135 billion yen ($863 million).
    Crispy Holdings, which is wholly owned by Carlyle, will
offer 6,500 yen per share, a 20% premium to KFC Holdings Japan's
closing price on Monday. The tender offer will last from May 21
to July 9.
    Buyout funds have been increasingly active in Japan as more
corporations step up sales of non-core assets or seek buyers due
to succession issues. The deal would be the third largest
private equity buyout this year, according to LSEG data.
    KFC Holdings Japan operates KFC restaurants in Japan under a
master franchise agreement with Yum! Brands  YUM.N , which also
owns the Pizza Hut and Taco Bell chains.
    KFC Holdings Japan's board of directors will recommend the
company's shareholders tender their shares, a spokesperson for
Carlyle said.
    Mitsubishi Corp  8058.T , the biggest shareholder in KFC
Holdings Japan with a 35% stake, said separately it would tender
all its shares to the offer.
    On Tuesday morning, KFC Holdings Japan's shares were
untraded amid a glut of buy orders, quoted up almost 18.5% at
its daily-limit high of 6,400 yen per share.

($1 = 156.4400 yen)

 (Reporting by Kantaro Komiya, Anton Bridge and Rocky Swift;
Editing by Kim Coghill and Subhranshu Sahu)
 ((rocky.swift@thomsonreuters.com;))