ThaiBev acquires 240 KFC stores for around US$330m

The acquisition is set to be completed by December 2017.

Thai Beverage is cooking up a beer and chicken combo after it acquired 240 KFC stores in Thailand from Yum Restaurants International Co Ltd (Yum).

CIMB said the preliminary consideration for the existing stores is US$330m (THB11.3b).

ThaiBev's subsidiary The QSR of Asia Co. Ltd. (QSA) entered an asset sale and purchase agreement with Yum for the stores, as well as for the properties and assets necessary for operations.

The acquisition is expected to be finished by the end of December 2017.

CIMB analyst Jonathan Seow commented, "On funding, we are not worried given that Thaibev has cash of THB2.5bn, a comfortable net gearing of c.0.3x, and generates annual operating cash flows of THB20bn-25bn."

Photo by MOs810 (Own work), via Wikimedia Commons