Yum Brands Inc. To Buy Little Sheep Group Ltd. Fastfood Chain of China For $862 Million

By on May 14, 2011 in Asia, Business, Stock Market, United States, World Comments
Yum Brands Inc.
Yum Brands Inc.
Image Credit: Yum

Yum Brands Inc. is buying out the remaining shares of China‘s Little Sheep Group Ltd., according to reports of several international news sites on Friday, May 13, 2011.

The Chinese restaurant has been offered a 32 percent premium of 6.50 Hong Kong dollars ($0.83) per share. Little Sheep‘s stock closing price on Thursday is 4.93 Hong Kong dollars in the Hong Kong exchange. The total value offered by Yum is about 6.7 billion Hong Kong dollars (approximately $862 million)

Yum is the fast-food chain that operates Pizza Hut, Taco Bell and KFC chains.

The acquisition of Little Sheep will raise the ownership of Yum from 27.2 percent to 93.2 percent. The remaining 6.8 percent is owned by the founding members of the Chinese company.

Yum shares went up by 13 cents to $54.86 during the initial trading on Friday, May 13.

Sum Su, chairman and CEO of Yum‘s China division, expects to expand Little Sheep‘s hot pot concept internationally, after the acquisition.



Spread The News!



Tags: , , , ,

Advertisement

Related News



What's On Your Mind?




Pinterest
Email