A consortium of investors that includes private equity firms Hillhouse Capital Advisors Ltd. and KKR & Co. is set to end its efforts to acquire restaurant operator Yum China Holdings Inc., Bloomberg News reported Sept. 10, citing sources with knowledge of the matter.
The Shanghai-based spinoff of U.S.-based Yum! Brands Inc. runs the quick-service chains KFC, Pizza Hut and Taco Bell in China, in addition to Little Sheep hotpot restaurants.
In August, Yum China reportedly rejected a take-private offer of $46 per share made by the consortium, which has been said to also include DCP Capital, Baring Pvt. Equity Asia and Chinese sovereign wealth fund China Investment Corp.
The group has decided against attempting another bid, the sources told Bloomberg. They added that the consortium determined that deteriorating business conditions for Yum China in addition to the threat of a trade war between the U.S. and China would complicate further discussions or a potential deal.
Representatives for both the consortium and Yum China declined to comment to Bloomberg about the matter.