Sep
05

Yum Brands in China Adds Owners With Skill and Connections

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Yum Brands has added some spice at a price. The company, which owns KFC and Pizza Hut, is selling part of its China business to Alibaba’s mobile-payments affiliate and a private-equity firm run by Fred Hu, the former chairman of Goldman Sachs China. They bring valuable technology skill and connections. It is a better deal than usual for so-called cornerstone investors, but may pay off for Yum’s coming spinoff.

Mr. Hu’s Primavera Capital and Jack Ma’s Ant Financial, which operates Alipay, are investing $410 million and $50 million in Yum China. In return, they will together receive 4.3 percent to 5.9 percent of the company. That implies a wide valuation of $8.5 billion to $11.6 billion for the enterprise. Their final stakes will depend on where Yum China’s shares trade when they are listed separately, a flotation planned for next month…

Yum Brands in China Adds Owners With Skill and Connections

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