US-based private equity firm Carlyle Group and Hong Kong-based investor Trustar Capital are looking to sell part of their stakes in McDonald’s China and Hong Kong businesses, Bloomberg reported.
The news agency reported that the sale is expected to rake in $4bn if finalised.
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Carlyle and Trustar hold 28% and 42% interests in the fast food restaurant chain, respectively.
The companies plan to establish a vehicle for enabling partial exit for some current investors and raising new funds to spur the restaurant’s growth.
In 2017, McDonald’s divested an 80% stake in its China and Hong Kong operations in a deal valued at up to $2.08bn.
The restaurant chain presently operates 5,400 stores in China and 250 in Hong Kong and is currently valued at $10bn, including debt.
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By GlobalDataIt plans to open a further 900 stores in China this year.
McDonald’s plans to eventually increase the store count to 10,000, using funds and other resources from shareholders.
McDonald’s shareholders have approved the plan, with the private equity firms presently in talks with UAE-based Mubadala Investment and Singapore-based wealth fund GIC on sealing a deal.
An agreement is expected to be finalised with investors in the fourth quarter of 2023.
The plan has not been officially confirmed by Mubadala, GIC, Carlyle and Trustar.
Earlier this year, McDonald’s said that it plans to build new outlets and review its staffing levels as part of its updated business plan.
The decision could also result in job cuts.
