Yum China Soars on Report Hillhouse Capital Seeks Buyout
(Bloomberg) -- Hillhouse Capital Group is in early talks to acquire Yum China Holdings Inc, The Information reported on Thursday, sending shares in the fast-food operator soaring the most on record.
A transaction value is still being discussed and the deal could still fall apart, according to The Information’s article, which cites three unidentified people familiar. Hillhouse is planning to form a consortium for the bid, The Information said.
Yum China shares rose 28 percent, the biggest move since the company’s initial public offering on October 17, 2016, while the S&P 500 Index was unchanged.
Goldman Sachs is advising Yum China while Morgan Stanley is advising Hillhouse, two of the people told The Information.
Hillhouse, Yum China, and Morgan Stanley didn’t respond to The Information’s requests for comment. Goldman declined to comment to the publication.
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