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QSR, KFCH shareholders approve USD1.7bn buyout offer.


6 November 2012 - Malayasiaa[euro](tm)s two main KFC fast food franchisees QSR Brands Bhd (PINK:QSRBF) and KFC Holdings (Malaysia) Bhd (KUL:3492), or KFCH, said their shareholders had given their support to the USD1.7bn (EUR1.3bn) buyout bid, which will see the companies going private.

The offer was launched last December by a consortium comprising British private equity firm CVC Capital Partners Ltd and Malaysian state-run investor Johor Corp, which was later joined by the Employee Provident Fund (EPF).

Johor Corp currently owns almost half of KFCH and about 60% of QSR, according to Reuters. It was not eligible to take part in the vote as it had made the offer.

The bid was backed by around 99% of KFCH shareholders and some 98% of QSR shareholders at their meetings on 5 November and 6 November respectively. Previously, some minority shareholders told Reuters that they would not back the offer because it undervalued the companies. Massive Equity Sdn Bhd, the special purpose vehicle owned by Johor state, EPF and CVC, said in response that it considered the offer as fair and reasonable.

Following the vote, some minority shareholders said they had supported the bid in view of the declining profits at QSR and KFCH since the start of 2012.Country: MalaysiaSector: Hotels/Restaurants/Casinos/CateringTarget: QSR Brands Bhd, KFC Holdings (Malaysia) Bhd Buyer: Employee Provident Fund , Johor Corp, CVC Capital Partners Ltd Vendor: Minority shareholdersDeal size in USD: 1.7bnType: LBO, P2PStatus: Agreed, Bidding

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Publication:M & A Navigator
Date:Nov 6, 2012
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