Little Sheep vaults 22 pct after Yum! stake buy

HONG KONG, March 25 (Reuters) - Hot-pot restaurant chain operator Little Sheep Group 0968.HK soared more than 22 percent on Wednesday after Yum! Brands Inc (YUM.N) said it would buy about 20 percent of the company for $63 million.

The stock was up 18.7 percent at HK$3.11 by 0220 GMT after hitting a high of HK$3.22.

Yum is buying the shares at HK$2.4 per share, a 8.4 percent discount to the Tuesday closing price.

Little Sheep said Yum! Brands would buy 205.53 million shares from 3I, PraxCapital Fund, and its controlling shareholder Possible Way International.

(Reporting by Donny Kwok; Editing by Jonathan Hopfner)

(donny.kwok@reuters.com; +852 2843 6415)