Carlyle Group Inc and Trustar Capital are planning to raise $4 billion from wealth funds to buy part of their stakes in McDonald’s Corp operations in Hong Kong and mainland China, Bloomberg News reported on Wednesday.
The move would provide a partial exit for the buyout firms after they bought the business six years ago, according to the report, citing people familiar with the matter.
Shareholders have agreed to the plan, and the asset managers have approached Mubadala Investment and GIC Pte to finalise a deal that values the business at up to $10 billion including debt, the report said.
The asset managers aim to reach an agreement with investors in the fourth quarter of this year, the report added.
Carlyle declined to comment, while McDonald’s China and GIC did not immediately respond to a Reuters request for comment.
Reuters had reported in April citing two people with knowledge of the matter that the U.S.-based private equity firm was discussing various options including setting up a continuation fund with financial advisers for its stake in McDonald’s China.
Reuters