According to a report by Reuters, McDonald's Corporation MCD is in discussions with private equity firms to buy 2,800 of its restaurants in North Asia.
McDonald's has been active in seeking partners or buyers for its Asian assets for the past few months.
Reuters, citing "people familiar with the matter," stated in its latest report Thursday that McDonald's has hired bankers to run the sale of its restaurants across China, Hong Kong and South Korea. The report added that the fast food chain is exploring a potential sale to Bain Capital, MBK Partners, TPG Capital Management and China Resources Holdings.
Reuters added that the structure of the deal remains undecided but McDonald's is expected to receive a one-time franchise payment and ongoing royalty fees of 3 to 5 percent of annual turnover.
Shares of McDonald's were trading higher by 0.17 percent ahead of Thursday's market open.
Image Credit: Public Domain
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
