CITIC Capital bidding for 22% McDonald's China stake: chief

This post was originally published on this site

By Divya Chowdhury and Savio Shetty

(Reuters) – Chinese private equity firm CITIC Capital is actively bidding for a 22% stake in McDonald’s Corp’s (N:) mainland China and Hong Kong businesses, its chairman and chief executive told Reuters on Thursday.

The stake is being sold by state-owned CITIC Ltd (HK:), which together with CITIC Capital and Carlyle Group (O:) bought 80% of McDonald’s China business in 2017.

Zhang Yichen, talking to Reuters Global Markets Forum participants on the sidelines of the World Economic Forum meeting in Davos, Switzerland, said the final result of the sale should be known in early February.

“Getting an additional stake will consolidate the control of the company in the hands of CITIC Capital which will facilitate (the) long-term stability of the company,” said Zhang, who is also chairman of McDonald’s China and Hong Kong.

Reuters reported earlier this month CITIC Capital would be the most likely buyer of the stake.

CITIC Ltd is the main listed arm of state-owned conglomerate CITIC Group while CITIC Capital is the group’s flagship PE arm.

The firm, which raised $2.8 billion last August in its fourth China buyout fund, will launch fundraising for a Japan-focused mid-market buyout fund toward the end of 2020, Zhang said.

CITIC Capital plans to raise $200 million for a special purpose acquisition company in a U.S. initial public offering, according to its filing to the New York Stock Exchange on Wednesday.

(This interview was conducted in the Reuters Global Markets Forum, a chat room hosted on the Eikon platform. Sign up here to join GMF: )

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment