Yum Brands to Buy 20% Stake in China Hot-pot Chain

[Coventina]

Source: Bloomberg

March 25 (Bloomberg) -- Yum! Brands Inc., owner of the Taco Bell, Pizza Hut and KFC restaurant chains, agreed to pay $63 million for a 20 percent stake in China’s Little Sheep Group Ltd. to win more diners in the world’s most populous nation.

The U.S. restaurant operator will buy 205.5 million shares in the Chinese hot-pot specialist, Little Sheep said in a Hong Kong stock-exchange filing today. Yum is buying the stake from controlling shareholder Possible Way International Ltd., and 3i Group Plc, Prax Capital Fund I LP and Billion Year International Ltd.

Yum is getting a stake in a 375-restaurant chain in the only economy among the world’s five biggest that grew in the fourth quarter. Louisville, Kentucky-based Yum is opening a store a day in China, where it’s offering more local cuisine at its East Dawning chain, as well as at KFC and Pizza Hut outlets.

“China remains the biggest growth opportunity in the restaurant industry in the 21st century,” Sam Su, vice chairman of Yum! and president of Yum Restaurants China, said in the statement distributed today over Business Wire. Yum! China has about 3,000 stores, contributing 27.7 percent to the U.S. chain’s total revenue in 2008.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=awfnvZ7BBh08&refer=home

[liberal N proud]

1. Source of melamine

[On the Road]

2. Those are Great Restaurants!

I wish they had them in the states.



Actually, looks like they have openened one in California. Take a look at all the traditional seasonings they put in the pot. One side is spicy, the other is savory: