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Tag: Sanpower Group

  • McDonald’s Korea sale collapses

    McDonald’s Korea sale collapses

    And in the simultaneous divestment process for the 20-year McDonald’s China franchise rights, TPG Capital has reportedly withdrawn leaving two rival private equity firms in the race – Bain Capital and Carlyle Group – competing with two Chinese companies previously reported to be in the negotiations: retailer Wumart Stores and Sanpower Group.

    With Maeil Dairies Industry Co dropping out of the running for McDonald’s Korea, that sale process seems at best stalled.

    McDonald’s, which directly manages about 400 stores in South Korea, has been looking for local partners to run the Korean outlets as franchise stores that pay annual commissions instead. The deal initially drew interests from several investors, including CJ and NHN Entertainment, but they have nixed their plans.

    Maeil Dairies had formed a consortium with Carlyle Group, but pulled out after failing to agree on terms of contract, industry sources familiar with the matter told the Yonhap news agency.

    “We can’t verify the specific details as McDonald’s headquarters office is in charge of the bidding process, but the sales process is still under way,” an official at McDonald’s Korea said, without elaborating on the deal.

    Meanwhile, in China, TPG’s withdrawal was confirmed overnight by unidentified sources close to the matter and reported by several news networks.

    Carlyle Group has partnered with Citic Group and Bain with GreenTree Hospitality, a hotel group.

    McDonald’s is seeking as much as $3 billion for the China rights, which come with a 10-year expansion option.

    There are about 2400 McDonald’s restaurants in China and Hong Kong and the US company wants its master franchisee to expand that network rapidly to compete with rival Yum! China’s expansion plans.

    The ongoing presence of private equity bidders in the process is surprising, because McDonald’s has made it clear it is seeking a long-term partner rather than private equity firms, which typically cash out after a few years.

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  • House of Fraser China debut nears

    House of Fraser China debut nears

    UK department store group House of Fraser is preparing for its debut in China after pushing back its original April launch date because of the Chinese New Year.

    House of Fraser China says it has made “good progress” with its store planning with the launch now set for late this year.

    The first store will open in Nanjing, inspired by the historic Frasers store in Glasgow, and featuring international and local brands. The opening will follow flat sales for the group during the first half of its latest fiscal year. However, the Chinese-owned department store group believes there is “significant opportunity” to set up as a global brand, says executive chairman Frank Slevin.

    When Sanpower Group acquired House of Fraser two years ago, founder Yuan Yafei spoke of a global vision for the department store, including outlets throughout the Middle East and Russia, and as many as 50 stores in China.

    House of Fraser last year confirmed it would open three stores in China.

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  • New contenders for McDonald’s China and Hong Kong

    New contenders for McDonald’s China and Hong Kong

    Private equity firms Carlyle Group and TPG Capital have teamed up with two different Chinese state companies to bid for the McDonald’s China and Hong Kong franchise licences.

    The deal is said to be worth between US$2 billion and US$3 billion, reports the Straits Times.
    McDonald’s has previously said it is looking for long-term partners rather than private equity firms, which typically cash out after a few years.

    Carlyle is working with Chinese state conglomerate Citic Group and TPG has joined with Beijing Capital Agribusiness Group to place binding bids ahead of this month’s deadline. Beijing Capital Agribusiness is McDonald’s current China partner.

    Reuters says the US fast-food giant, hit by food-supply scandals in China, has hired Morgan Stanley to run the sale of about 2800 restaurants in China, Hong Kong and South Korea.

    The two private equity-backed groups are bidding only for China and Hong Kong outlets, going up against Beijing Tourism Group, China Cinda Asset Management and private Chinese technology and real-estate firm Sanpower Group.

    China and Hong Kong account for more than 85 per cent of the 2800 outlets on the block.
    Meanwhile, South Korea’s Maeil Dairy Industry Co says it is considering bidding for McDonald’s Korean outlets, which are expected to fetch about $268 million. Interest has already been shown by CJ Corp and NHN Entertainment Corp.

    Changing to a less capital-intensive franchise model, McDonald’s is offering a 20-year franchise to buyers, with a 10-year extension option.

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  • Binding offers sought for McDonald’s China

    Binding offers sought for McDonald’s China

    Selected bidders for McDonald’s China and Hong Kong, including China Cinda Asset Management and dairy producer Beijing Sanyuan Foods, have been asked to make binding offers.

    Also invited earlier to submit a second-round bid are Sanpower Group, which owns UK department store House of Fraser, and GreenTree Hospitality.

    McDonald’s is selling 20-year mass franchise rights in China and Hong Kong, which could fetch $2 billion.

    Illinois-based McDonald’s has hired Morgan Stanley to run the sale of about 2800 restaurants in China, Hong Kong and South Korea along with 20-year franchise rights. The South Korean McDonald’s business is also being sold, with local cinema and cafe operator CJ Group reportedly the front-runner at this stage.

    McDonald’s announced in March that it was reorganising in Asia by bringing in partners to own restaurants within the franchise business. Competitor Yum Brands, which has the KFC and Pizza Hut chains, is also restructuring in China.

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  • Hamleys Hong Kong takeover

    Hamleys Hong Kong takeover

    Hamleys – the world’s oldest toy retailer – has been bought by a Hong Kong investor. As rumoured last week, the business has been sold to interests connected with the Sanpower Group in China’s mainland, which last year acquired UK department store House of Fraser.

    The buyer is C.banner International Holdings Limited, a Hong Kong-listed Chinese private enterprise, which describes itself as a strategic partner of Sanpower.

    The new owners plan to speed up the international rollout of the brand – and to pursue opportunities for concessions in department stores.

    In a statement, the new owners say they hope House of Fraser will “become C.banner’s priority business strategic partner”.

    “By virtue of the acquisition of Hamleys, C.banner will expand its retail businesses, and consider establishing deep relationships with department stores, so as to further promote the win-win development of its products and department stores through their brands and channels,” the company said in a statement.

    “C.banner hopes to implement its global brand strategy through introducing the products of House of Fraser and Hamleys, as well as capitalising on their channels to export its products overseas.

    “In the future C.banner will continue to actively explore business opportunities at home and abroad through mergers, acquisitions, strategic partnerships, as well as the establishment of other business relationships with leading retailer brands, to further implement its global brand strategy.”

    French owner Ludendo, which rescued Hamleys from a collapsed Icelandic bank three years ago for just £60 million, has already grown the business into an international toy brand, opening stores in Russia, Malaysia, Singapore – and last week in Vietnam. The company now has 53 stores owned or franchised. It turned over £62 million last year and posted a profit of £4.5 million.

    Founded in 1760 as Noah’s Ark, Hamleys opened its Regent St flagship store in London’s West End in 1881.

    *Photo: From left to right: Chen Yixi, chairman of the board of C.banner, Yuan Yafei, chairman of Sanpower Group, Gudjon Reynisson, CEO of Hamleys, Jean Micdhel Grunberg, president of Lundendo, Rudolph Hidalgo, chief executive director of Ludendo, at a press conference announcing the sale.

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