QSR, KFC privatisation to conclude soon

This is written by my colleague Zaidi Ismail.

KUALA LUMPUR: The RM5.2 billion privatisation of KFC Holdings (M) Bhd and its parent QSR Brands Bhd will be completed on Monday, subsequently paving the way for the de-listing of both firms.

QSR Brands managing director Datuk Ahmad Zaki Zahid said KFC and QSR shareholders will be paid on January 23 and January 25, respectively. 

“The RM5.2 billion privatisation cost is being paid by Johor Corp Bhd (JCorp), the Employees Provident Fund (EPF) and CVC Capital Partners,” Ahmad Zaki told reporters here yesterday at the launch of Pizza Hut’s latest offering, the Golden Harmony Feast.

He, however, declined to comment on how much each party will get from the privatisation exercise as well as the delisting date.

UK-based CVC Capital Partners in December 2011 had teamed up with JCorp and the EPF in a massive RM5.2 billion buyout offer for KFC and QSR, which was approved by the shareholders of both listed firms.

KFC and parent QSR Brands will be taken private by Massive Equity Sdn Bhd at RM4 for each KFC share and RM6.80 for each QSR share, which also include RM1 for each KFC warrant and RM3.79 for each QSR warrant.

Massive Equity is a special-purpose vehicle owned by the companies' ultimate parent JCorp, private equity firm CVC Capital Partners and the EPF.

JCorp and CVC made the buyout offer in December 2011 with the EPF joining in the bid later in May.

The privatisation of both companies is the largest private equity deal in Southeast Asia. Stocks of both companies have been suspended since January 4 to facilitate the capital repayment.

Ahmad Zaki said QSR Brands, which is the franchisee for Pizza Hut, plans to spend RM35 million to open 45 new Pizza Hut restaurants and upgrade 12 existing ones nationwide this year.

He said with the expansion plan, Pizza Hut will have a total of 300 branches by year-end. He also said the restaurant owner and operator is also upgrading its online order and delivery system that had started last year. It is expected to be completed and operational by the second quarter of this year.

"We hope to receive online orders up to 30 per cent of total orders from 12 per cent, at present," said Ahmad Zaki.

Pizza Hut has allocated RM1.3 million to promote the Golden Harmony Feast, in conjunction with the Chinese New Year next month. This meal comprises a Golden Crab Claw pizza, a Golden Platter and the Fizz Golden Passion drink.