According to Reuters, “Yum Brands Inc., parent of the KFC, Taco Bell and Pizza Hut fast-food chains, said it made a preliminary offer to buy most of the shares of China’s Little Sheep restaurants that it does not already own.”
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“Yum, which owns 27.2 percent of Little Sheep’s stock, said it would wait for approval from regulators before making a formal offer for the remaining shares in the chain, which owns and operates Mongolian hot pot restaurants, primarily in China. Yum said Little Sheep’s chairman and other shareholders would keep a minority interest.’Should any proposed transaction close at a reasonable price, we would view it as a positive for Yum, as it would further solidify Yum’s position as the leading restaurant company in fast-growing China,’ Janney Capital Markets Mark Kalinowski said in a client note.”
