CVC mulling sale of stake in Malaysia’s QSR Brands after IPO delays: sources

PRIVATE equity firm CVC Capital Partners is considering selling its 21 per cent stake in QSR Brands after multiple attempts by the regional fast-food franchise operator for a domestic listing, two sources familiar with the matter told Reuters.

QSR Brands (M) Holdings, the Malaysian operator of KFC and Pizza Hut restaurants in South-east Asia, has tried to hold an initial public offering (IPO) on the local stock exchange since 2017.

The company, which holds the sole right from Yum! Brands to run the fast-food chains in Brunei, Cambodia, Malaysia and Singapore, last postponed its IPO plan last year. This came amid concerns that poor macroeconomic conditions could hurt its valuation.

The sources, who declined to be named as the matter is private, said that CVC is in talks with at least one adviser to explore the sale of its stake, worth more than RM1.2 billion (S$361.8 million).

Malaysian state investment firm Johor Corp is the largest shareholder of QSR Brands with a 56 per cent stake, according to Johor Corp’s annual report.

QSR Brands said that it does not “have any knowledge about the matters raised” in a response to a request for comment on Thursday. CVC declined to comment.

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CVC has been active in South-east Asia, a region with a population of over 660 million. Last month, it bought a “minority stake” in Indonesian gas company Samator Indo Gas from existing shareholders for US$155 million. In December, it sold its minority stake in Indonesia’s Garudafood Putra Putri Jaya to US-based Hormel Foods.

Selangor-headquartered QSR runs more than 850 KFC and 500 Pizza Hut restaurants, according to its website. REUTERS