McDonald's to keep up to 25% stake in China, HK stores: source

Hong Kong

MCDONALD'S Corp is looking to raise US$1 billion to US$2 billion with the sale of its China and Hong Kong stores after the US fast-food chain decided to keep "a significant minority stake in the business", a person with direct knowledge of the plans said on Tuesday.

The company has picked a consortium led by private equity firm Carlyle Group LP and Chinese conglomerate Citic Group Corp to buy the stores, and its decision to retain a stake of up to 25 per cent lowered the price tag for the business from up to US$3 billion expected previously, said the person, who declined to be identified because details of the deal are not public.