A United States-based investment fund has initiated a bid to acquire the operator of the Kentucky Fried Chicken (KFC) fast-food chain in Japan.
The Carlyle Group revealed its intention on Monday to propose an acquisition of KFC Holdings Japan, offering 6,500 yen per share, equivalent to over 40 dollars, in a bid to secure majority ownership of the company. The aim of this acquisition is to transition the fast-food chain into private ownership.
Mitsubishi Corporation, a prominent trading conglomerate, holds the largest stake in KFC Japan, owning more than 35 percent of the company’s shares.
The plan outlined by the US investment fund involves converting KFC Japan into a wholly owned subsidiary and subsequently delisting its shares from public trading. The anticipated cost of this acquisition exceeds 860 million dollars.
In a strategic move to restructure its business portfolio, Mitsubishi has opted to divest its stake in KFC Japan.
The management of KFC Japan intends to endorse the tender offer to its shareholders. They argue that the proposed acquisition presents an opportunity to enhance the chain’s value through accelerated expansion of outlets and adjustments to its menu offerings.
