CITIC has plans to sell a 22 percent stake in McDonald’s Chinese mainland and Hong Kong business to its parent group’s private equity arm.
The main listed arm of the Chinese state-owned CITIC Group, CITIC Ltd., will aim to raise at least 2.17 billion yuan, according to a report citing a Beijing bourse filing.
The report also underlined CITIC Capital, the group’s alternative investment arm, as the likely buyer of the stake, adding to its $26 billion in assets already under management. Finalization of the deal is earmarked for early February, one of the sources added.
McDonald’s said that strategy and daily operations at its mainland and Hong Kong business would be unaffected by the deal. CITIC also provided assurances, noting that the deal was a purely «commercial decision» and that it would continue cooperation with McDonald’s business in China.
CITIC will be selling the 22 percent stake through Fast Food Holdings Ltd., a holding firm set up with CITIC Capital to hold the combined 52 percent stake of McDonald’s mainland and Hong Kong business. Following the deal, CITIC Ltd. will still hold 10 percent of the regional McDonald’s business.