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Yum Brands pushing new deal to spin off KFC and Pizza Hut in China

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A Chinese state-owned consortium is looking to take over the most dominant foreign fast-food chains in the country.Backed by the government’s sovereign wealth fund China Investment Corp (CIC), a group of investors are seeking to buy a majority stake in Yum Brands’ China business. The deal could value the business at US$8 billion, Bloomberg reported.The report said that the investor group, which also includes KKR and Baring Private Equity Asia, is conducting due diligence on the deal.Yum Brands now operates more than 7,100 KFC and Pizza Hut restaurant outlets in over 1,100 Chinese cities. The group also expects to open about 600 new eateries in the country in 2016.Last October, Yum Brands announced plans to split its China business. Yum China will become a franchisee of the group and operate separately by the end of 2016. The China division is expected to file an application for an initial public offering with the New York Stock Exchange and possible the Hong Kong Stock Exchange.

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