Yum Says It's “Full Steam Ahead” After Chinese Spin Off Approved
27 Sep 2016 --- “We are moving full steam ahead,” said Yum China boss Greg Creed, as the directors of the US fast food giant approved the hiving off of its Chinese unit.
The owner off Pizza Hut and KFC has sold off a combined $460m stake in its Chinese operations to Chinese investment firm Primavera Capital and Ant Financial Services Group, an affiliate of the internet giant Alibaba.
Its Chinese unit will begin trading as a separate entity on the New York Exchange in November this year.
Creed said: “We are moving full steam ahead with the separation of Yum China, establishing two powerful, independent and focused growth companies dedicated to building on our brand strengths and unlocking the full value of each business for our shareholders.”
“This is an exciting time for Yum China as we approach our launch as a new, independent public company,” said Micky Pant, Chief Executive Officer of Yum China.
“Yum China has a leading position in the Chinese market, and we see tremendous opportunities to leverage our well recognized brands and decades of experience to drive growth. We are all energized to achieve Yum China’s full potential and create sustained value for shareholders.”
The move to spin off the Chinese business followed activist investor demand for change.
