Yum Brands is in talks with private equity firms KKR & Co LP and Hopu Investments, among others, over the sale of a minority stake in its China operations as it prepares to spin off the once booming unit, two sources familiar with the plans said on Thursday.
Several other Chinese investors were also looking into the deal, said the sources, who declined to be named because details of the transaction aren't public.
Yum plans to spin off its 6,900 restaurants in China, which account for about half of the company's total sales, by the end of 2016. Yum China will list on the New York Stock Exchange, and possibly in Hong Kong.
The China business could be valued at about $10 billion, analysts and bankers estimate based on its core earnings.