Carlyle & Trustar Plan to Exit McDonald’s China for $4B

U.S based private equity firms Trustar Capital and Carlyle Group have been having discussions over raising $4 billion which could cause its potential exit from McDonald’s China

Trustar Capital and Carlyle Group are anticipating raising $4 billion through wealth funds to be able to buy their stake proportions in McDonald’s Corp operating in mainland China and Hong Kong, as reported by Bloomberg News.

This decision would pave the way for a partial exit for the buyout organizations after they took over the business six years back, according to a report cited by individuals familiar with the matter, on Wednesday.

“The company’s shareholding structure will not change. All stakeholders are highly aligned on the process,” McDoanls’s China confirmed in its response via email to Reuters on Thursday.

McDonald’s China also confirmed that it will still continue to access its capital and all other resources from McDonald’s Crop, Carlyle, and Trustar Capital.

The stakeholders have shared their agreement over the plan, and the evaluation managers have proposed to GIC Pte and Mubadala Investment to confirm a deal that evaluates the business at almost $10 billion, which includes the debts, the report added.

The report also added that the asset managers wish to confirm an agreement with the investors within the fourth quarter of the year. Back in April, Reuters cited two individuals that had firm knowledge on the matter that the private equity firm based in the U.S. has been having discussions with financial advisors over multiple options, which included setting up a continuation fund regarding the company’s stake in McDonald’s China.

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