KFC operator in Thailand explores sale of business -sources

Thai Beverage Public

25/07/2022 11:22

By Yantoultra Ngui and Anshuman Daga
    SINGAPORE, July 25 (Reuters) - Restaurants Development
Company is exploring the sale of its KFC franchise business in
Thailand, valued at roughly $300 million, as revenue rebounds
with a recovery in Southeast Asia's second-largest economy,
three sources aware of the matter said.
    The Bangkok-based firm, backed by a consortium led by
Southeast Asian focused private equity firm AIGF Advisors Pte
Ltd, is in talks with at least one advisor on the potential
sale, said the sources, who asked not to be named as they were
not authorised to speak to the media.
    Restaurants Development was considering the sale of its KFC
business in 2020 but the process was shelved due to the impact
of the coronavirus pandemic, two of the sources said.
    Restaurants Development and AIGF did not respond to a
request for comment. 
    The revival of the sale comes with a pick up in Thai
consumer confidence in June, for the first time in six months,
boosted by improved economic activity following an easing of
COVID-19 curbs.  urn:newsml:reuters.com:*:nL1N2YO0E8
    Restaurants Development recorded its highest ever quarterly
sales in the first three months of 2022, it said on its website,
and also the highest annual same-store sales growth rate.
    Its KFC business is expected to grow further over the next
few quarters on the back of the economic recovery and easing of
travel restrictions, one of the sources said.
    Two sources said potential suitors could include Central
Restaurants Group and The QSR of Asia Co Ltd, a unit of Thai
Beverage Plc  TBEV.SI , which run the other KFC franchises in
Thailand.
    Thai Beverage declined to comment and there was no response
from Central Group to a request for comment.
    Founded in 2016, Restaurants Development employs more than
5,000 people and operates more than 240 restaurants across
Thailand. This compared with the 4,000 people and 200
restaurants it employed and managed two years ago.
    It currently owns 236 KFC stores, according to its website.
    As in other markets, Southeast Asian mergers and
acquisitions activity is going through a soft patch, hit by high
inflation, rising interest rates and weak equity markets.
    Last week, Thailand's central bank chief said the central
bank will ensure the recovery is not interrupted by efforts to
tackle higher inflation, amid expectations of an increase in
interest rates.  urn:newsml:reuters.com:*:nL1N2Z105C

 (Reporting by Yantoultra Ngui and Anshuman Daga; Editing by
Kirsten Donovan)
 ((Yantoultra.Ngui@thomsonreuters.com;))