Jardine Matheson Weighing Sale of KFC Operator in Hong Kong, Sources Say

(Bloomberg) -- Jardine Matheson Holdings Ltd., a diversified Asia-based group whose businesses span property, transport, retail and luxury hotels, is considering strategic options for its restaurant unit, people with knowledge of the matter said.

The Singapore-traded conglomerate is weighing a sale of Jardine Restaurant Group, a wholly-owned subsidiary that operates KFC and Pizza Hut franchises in Hong Kong, Macau, Taiwan and Vietnam, said the people, who asked not to be identified as the information is private. The subsidiary also runs Pizza Hut restaurants in Myanmar, according to its website. 

Jardine Matheson has held preliminary discussions with advisers, the people said. Deliberations are still at an early stage and the group could decide to keep the business, they said. 

A representative for Jardine Matheson didn’t immediately respond to requests for comment. 

Yum! Brands Inc., the owner of the KFC and Pizza Hut trademarks, sold the KFC business in Taiwan in 2010 and offloaded the KFC franchises in Hong Kong and Macau to Jardine Restaurant Group in 2013, according to the unit’s website.

Jardine Restaurant Group operates over 900 restaurants in the region and has more than 27,000 employees, the website shows. The unit contributed $18 million profit to Jardine Group in the six months ended in June last year, compared with $15 million in 2020, Jardine Matheson’s half-yearly earnings announcement shows. 

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