Yum! Brands plans to conduct $460 million private placements of stock

Primavera Capital, Ant Financial Services to buy Yum China shares

By Devika Patel

Knoxville, Tenn., Sept. 2 – Yum! Brands Inc. negotiated a $410 million private placement of Yum China Holdings, Inc. common stock with Primavera Capital Group and a $50 million placement of Yum China stock with Ant Financial Services Group on Sept. 2, according to an 8-K filed Friday with the Securities and Exchange Commission.

The investors will purchase the stock immediately following Yum China’s planned spinoff from Yum! Brands. The investment will give them 4.3% to 5.9% in the aggregate of Yum China’s common stock.

The investors will also receive warrants for an additional 4% of Yum China’s stock.

The effective price will be equal to an 8% discount to the volume-weighted average trading price of Yum China’s equity value for the period beginning 31 days and ending 60 days after completion of the spinoff.

Yum! Brands is a Louisville, Ky.-based quick-service restaurant operator.

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