By Jason Ng
KUALA LUMPUR--QSR Brands Bhd (9415.KU), one of the two targets
of a $1.71 billion buyout by a group led by private equity firm CVC
Capital Partners, said Tuesday that more than 98% of its
shareholders have voted in favor of the sale.
Massive Equity Sdn Bhd., a company jointly owned by the two
companies' major shareholders-- Johor Corp. and CVC Capital
Partners Asia III Ltd.--offered MYR6.80 per share to shareholders
of QSR Brands for its businesses, including all assets and
liabilities. The consortium has also offered KFC Holdings
(Malaysia) Bhd (3492.KU) MYR4.00 a share.
Shareholders of KFC Holdings had also approved the buyout offer,
with over 99% voting to support the deal in an extraordinary
general meeting Monday.
A takeover of QSR and its subsidiary KFC will allow the
potential buyers control over one of the largest fast-food chains
in the country with more 980 outlets in Malaysia, Singapore,
Brunei, Cambodia and India.
Reuters reported Nov. 2 that two shareholders representing about
5% in KFC Holdings and 3% in QSR planned to vote against the
deal.
Following the shareholders' approval, the consortium will seek
court approval for a capital repayment exercise, said a person
familiar with the exercise who declined to be identified, adding
that he expects the exercise to be completed by the end of this
year.
QSR held a 50.73% stake in KFC Holdings as of March 11,
according to its annual report. Johor Corp. holds 54.25% in Kulim
(Malaysia) Bhd (2003.KU), which in turn controls more than a 50%
stake in QSR.
Kulim had rejected an offer from the Malay Chamber of Commerce
to buy its stake in QSR Brands in January. In November 2010, Kulim
also rejected offers for both KFC and QSR from U.S.-based Carlyle
Asia Investment Advisors Ltd. as well as a buyout offer from Idaman
Saga Sdn. Bhd., which is controlled by Malaysian businessman Halim
Saad.
Write To Jason Ng at jason.ng@dowjones.com
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