Chinese state-backed conglomerate CITIC Group Corp. plans to sell a 22% stake in McDonald's Corp.'s China and Hong Kong business to its private equity arm, Reuters reported Jan. 8.
CITIC hopes to make at least 2.17 billion yuan from the sale, the report said, citing a filing to the China Beijing Equity Exchange.
The sale to CITIC Capital Partners is expected to be finalized by early February. CITIC Group reportedly said it was a purely "commercial decision" that will continue to help develop McDonald's business in China.
In 2017, McDonald's sold 80% of its China and Hong Kong operations to CITIC Group, CITIC Capital and U.S. private equity firm Carlyle Group LP for $2.08 billion, according to the report. After the deal, CITIC Group held 32% of the business, Carlyle 28% and CITIC Capital 20%.
As of Jan. 7, US$1 was equivalent to 6.94 Chinese yuan.