McDonald’s Malaysia, Singapore ‘buyer found’
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Twenty-year franchise rights for McDonald’s Malaysia and Singapore outlets have been conditionally sold to a Saudi Arabian group for up to US$400 million.
Reza Food Services, which owns McDonald’s restaurants in Saudi Arabia, is seeking finance from Malaysian bank CIMB to finance the transaction, insiders say.
McDonald’s is moving to bring in partners as it switches to a less capital-intensive franchise model in Asia, and has said it wants regional family-owned groups and local tycoons as long-term partners.
Insiders say the basic terms of the agreement with Reza have been finalised, with the deal expected to be completed by the end of the year.
McDonald’s, which has about 260 restaurants in Malaysia and about 120 in Singapore, is also selling its China and Hong Kong outlets, and has received final bids from at least three groups.
Questions & Answers
Q.Which company is reportedly buying the McDonald's franchise rights in Malaysia and Singapore?
Which company is reportedly buying the McDonald's franchise rights in Malaysia and Singapore?
Reza Food Services, a Saudi Arabian group that already owns McDonald's restaurants in Saudi Arabia, is said to be acquiring these rights.
Q.How much is the deal for the Malaysia and Singapore McDonald's franchise rights potentially worth?
How much is the deal for the Malaysia and Singapore McDonald's franchise rights potentially worth?
The conditional sale of the franchise rights for Malaysia and Singapore outlets is for up to US$400 million.
Q.Which financial institution is reportedly helping to fund the acquisition?
Which financial institution is reportedly helping to fund the acquisition?
Insiders suggest that Reza Food Services is seeking finance from the Malaysian bank CIMB to fund the transaction.
Q.When is this deal expected to be finalised?
When is this deal expected to be finalised?
The basic terms of the agreement have been finalised, and the deal is expected to be completed by the end of the current year.