McDonald’s China owners Carlyle, Trustar plan partial exit with US$4 billion stake sale; GIC, Mubadala among investors approached
- Singapore’s GIC and Abu Dhabi sovereign wealth fund Mubadala Investment among those approached for the deal valuing the business at up to US$10 billion
- McDonald’s sold about 80% of its China and Hong Kong operations for around US$1.7 billion in 2017, valuing the business at as much as US$2.08 billion
Carlyle Group and Trustar Capital are seeking to raise US$4 billion from funds including Singapore’s GIC to buy part of their stakes in McDonald’s operations in Hong Kong and mainland China, providing a partial exit for the buyout firms after they bought the business six years ago, people familiar with the matter said.
Mubadala Investment, the Abu Dhabi sovereign wealth fund, has also been approached about the deal that values the business at up to US$10 billion including debt, the people said. Shareholders have agreed to the plan, and the asset managers aim to finalise an agreement with investors in the fourth quarter, they said, asking not to be identified discussing private matters.
The private equity firms are setting up a new vehicle to provide a partial exit for existing investors while attracting fresh capital to fuel restaurant growth. Rolling over assets into a new fund has become an increasingly popular way for buyout firms to generate liquidity for their investors after volatile public markets and spiking interest rates made exits harder over the past 18 months.
Representatives at Carlyle, Trustar, Mubadala and GIC declined to comment.
The fast-food chain aims to increase its stores to 10,000, leveraging the capital and other resources from shareholders as it capitalises on sustainable growth in China, a spokesperson said in response to Bloomberg’s inquiry.