The restaurant development company is exploring the sale of its KFC franchise business in Thailand, worth about $300 million, as revenue picks up as the recovery of Southeast Asia’s second-largest economy, three sources said. be aware of this imminent sale.
The Bangkok-based firm, which is backed by a consortium led by Southeast Asia-focused private equity firm AIGF Advisors Pte Ltd, is in talks with at least one adviser about the potential sale, the unnamed sources said. because they were not authorized to speak to the media.
It was previously considered to sell the KFC business in 2020, but the process was suspended due to the fallout from the coronavirus pandemic, two of the sources said.
The rebound in sales comes with Thai consumer confidence rebounding in June for the first time in six months, boosted by improved economic activity following an easing of COVID-19 restrictions.
The development company has recorded its highest quarterly revenue ever in the first three months of 2022, the company said on its website, as well as the highest annual growth in same-store sales.
Its KFC business is expected to grow further in the coming quarters thanks to the economic recovery and the easing of travel restrictions, one of the sources said.
Two sources said potential buyers could be Central Restaurants Group and The QSR of Asia Co Ltd, a unit of Thai Beverage Plc, which run the other KFC franchises in Thailand.
Thai Beverage declined to comment and there was no response from Central Group to a request for comment
Founded in 2016, the KFC development company employs more than 5,000 people and operates more than 240 restaurants across Thailand. This compares to the 4,000 people and 200 restaurants it employed and managed two years ago.
It currently owns 236 KFC restaurants, according to its website.
As in other markets, M&A activity in South East Asia is in a slump due to high inflation, rising interest rates and weak equity markets.
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