McDonald's exploring sale of stake in Japanese arm - Nikkei
21/12/2015 18:02
Dec 21 (Reuters) - McDonald's Corp MCD.N is reaching out
to investors about selling a part of the fast-food company's
stake in its Japanese arm for about 100 billion yen ($826.2
million), the Nikkei business daily reported, without citing
sources.
A McDonald's executive recently traveled to Japan to talk
with five or so potential buyers, including trading houses and
investment funds, about selling 15-33 percent of McDonald's
Holdings Co (Japan) Ltd's 2702.T outstanding shares, the
newspaper said. (http://s.nikkei.com/1PjDrBi)
McDonald's, which owns nearly half of the Japanese unit, has
asked potential buyers to respond by mid-January, and the top
candidate will likely be granted the right of first refusal,
Nikkei said.
McDonald's was not immediately available to comment.
McDonald's Japanese unit slid deep into losses in the first
six months of the year, as customers stayed away after a string
of safety scandals and the fast-food chain booked store closure
and other restructuring costs, and forecast a full-year loss of
38 billion yen. urn:newsml:reuters.com:*:nL3N10M2YB
Sales have been hit since a major Chinese supplier of
chicken was found using expired meat last year. The business ran
into problems again in January when some customers found foreign
objects, including a tooth, in its food.
McDonald's Japanese unit was valued at $3.23 billion as of
Monday's close.
($1 = 121.03 yen)
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Sriraj Kalluvila)
((sruthi.ramakrishnan@thomsonreuters.com; Within U.S.+1 646 223
8780, outside U.S. +91 80 6749 1130; Reuters Messaging:
sruthi.ramakrishnan.thomsonreuters.com@reuters.net))
Keywords: MCDONALDS JAPAN DIVESTITURE/