South Korea's CJ Group, a food-to-entertainment conglomerate, said on Wednesday it has submitted a letter of intent to buy McDonald's Corp's South Korean unit, adding that details have not been decided.
South Korea’s CJ Group, a food-to-entertainment conglomerate, said on Wednesday it has submitted a letter of intent to buy McDonald’s Corp’s South Korean unit, adding that details have not been decided.
Korean Economic Daily newspaper said the deal could fetch 300 billion won ($256.86 million) to 500 billion won, citing investment banking sources.
McDonald’s Corp, a U.S. fast food company, announced in March it was reorganizing its Asian operations by bringing in partners who would own the restaurants within a franchise business.
In South Korea, McDonald’s faces growing competition from domestic rivals like Lotte Group’s Lotteria and coffee shop chains like Starbucks.
McDonald’s has hired Morgan Stanley to run the sale of about 2,800 restaurants in China, Hong Kong and South Korea, Reuters previously reported.
It has received more than half a dozen bids for its China and Hong Kong stores, including offers from Beijing Tourism Group, Sanpower and ChemChina, in an auction that could fetch up to $3 billion, people familiar with the matter said.
The sale in South Korea is being run separately and it was not known if the same parties had expressed interest in that sale, the people added.
McDonald’s received first-round bids on June 20 and will draw up a shortlist of bidders for the next round in the coming weeks.