(Oct 27): Chinese private equity firms HSG and CPE are vying for a controlling stake in Burger King’s China business, according to people familiar with the situation.
Burger King’s parent Restaurant Brands International Inc may pick a buyer as soon as this month and potentially make an announcement when it releases earnings, the people said, asking not to be identified because the deliberations are private. Discussions are ongoing and might not result in a deal, they said.
Representatives for HSG, which was formerly known as Sequoia Capital China, CPE and RBI didn’t immediately respond to requests for comment.
Burger King isn’t the only well-known Western brand adapting to changes in the China market, with others including Starbucks Corp working to bring in investors for their businesses in the country, Bloomberg News has reported.
RBI, which also owns the Tim Hortons, Popeyes and Firehouse Subs chains, bought out its Burger King China joint venture partner for about US$151 million in February, and assumed roughly US$178 million of outstanding debt, its quarterly report shows.
The company said in the report it was trying to find a new controlling shareholder that aligned with its strategy of partnering with experienced local operators while maintaining a primarily franchised business.
See also: Meituan seeks to raise US$3 bil in dual-currency bond sale
Burger King has about 1,500 restaurants in China, according to RBI. The China business had cash and equivalents of US$58 million and US$150 million outstanding debt as of June 30, the company has said.
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