Under the proposal, Yum! will, through an indirectly wholly owned subsidiary, offer Little Sheep scheme shareholders HK $6.50 cash per Scheme share. Little Sheep operates hot pot concept restaurants primarily in China and is headquartered in Baotou, Inner Mongolia, China.
Its shares are listed on the Hong Kong Stock Exchange. Yum! currently owns approximately 27.2% of the outstanding shares of Little Sheep, whose founders, Zhang Gang, chairman and Mr Chen Hongkai, non-executive director, will remain as shareholders in Little Sheep alongside Yum! following the implementation of the scheme.
The proposal remains subject to various conditions, including the approval of Little Sheep shareholders. If the conditions are fulfilled and the Scheme is implemented, Yum! will operate and manage the business, and will own approximately 93.2% of the issued share capital of the company, with the remaining approximately 6.8% held by the participating founders.
Jing-Shyh Sam Su, chairman and CEO of Yum! Restaurants China, vice-chairman of Yum! Brands, said: “We are pleased we have received approval from the Ministry of Commerce to proceed with our proposed privatisation of Little Sheep restaurants. This is another important step in executing our strategy of being Rooted in China. We look forward to completing this transaction and are confident we can strengthen the Little Sheep brand and satisfy consumer demand for the hot pot concept.”
Source: Yum! Brands
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