KFC (M) Holdings Bhd (RM3.80/share) KFCH, QSR to sell entire businesses, undertakings to Massive Equity unit

KFC Holdings (M) Bhd and QSR Brands Bhd have called for EGMs on Nov 5 and Nov 6 respectively for the proposed disposal of their entire businesses and undertakings to Triple Platform Sdn Bhd a wholly owned subsidiary of Massive Equity Sdn Bhd in a deal that values both companies close to RM5.2bil.

For KFC, the sale of the businesses is equivalent to RM4 per share, while the warrants are priced at RM1 per share. The takeover offer via MESB values KFCH at a market capitalisation of RM3.2bil or RM4 a share.

The corporate exercises will involve both companies undertaking capital repayment via capital reduction exercises. Both companies also have resolutions to return the proceeds from the sale to both the mother share and warrant holders on entitlement dates to be determined later.

The completion of the proposed disposals hinges on several conditions precedent, including the approval or consent of Yum! Restaurant Asia Pte Ltd or Yum! Asia Franchise Pte Ltd or its affliaties. – StarBiz