In a significant development, Carlyle Group Inc and Trustar Capital are reportedly planning a $4 billion exit strategy for their investments in McDonald’s Corp operations in Hong Kong and mainland China. According to Bloomberg News, the buyout firms aim to raise the funds from wealth funds, providing a partial exit after their acquisition of the business six years ago.
The plan has gained approval from shareholders, and the asset managers have engaged with Mubadala Investment and GIC Pte to finalize a deal. This potential agreement would value the business at an impressive $10 billion, considering both the assets and outstanding debt, as per the report.
If all goes as planned, Carlyle and Trustar expect to reach an agreement with investors in the fourth quarter of this year, paving the way for a strategic move that would fuel further growth and opportunities for the McDonald’s brand in the region.
The news follows reports from April, where sources revealed that Carlyle, a U.S.-based private equity firm, was exploring multiple options, including the establishment of a continuation fund in collaboration with financial advisers for its stake in McDonald’s China.
While Carlyle declined to comment on the matter, McDonald’s China and GIC have yet to respond to Reuters’ request for a statement.
This potential exit strategy by Carlyle and Trustar highlights their confidence in the growth prospects of McDonald’s China operations. It also signifies the attractiveness of the fast-food industry in the region, given the substantial valuation and interest from prominent wealth funds.
As the negotiations progress, the market eagerly awaits the outcome, as it could have a significant impact on the future direction of McDonald’s operations in Hong Kong and mainland China.
Stay tuned for updates on this strategic development as Carlyle and Trustar work towards reshaping the landscape of McDonald’s China and driving new possibilities for the iconic fast-food chain.
