TPG, Abraaj team up against KKR for Saudi fast-food chain - sources

DUBAI Mon Nov 11, 2013 7:29am EST

DUBAI Nov 11 (Reuters) - TPG Capital and Abraaj Group have teamed up to compete against KKR & Co as the private equity firms eye a majority stake in Saudi Arabian fast-food chain Kudu, three banking and industry sources said.

Riyadh-based Kudu, which operates more than 200 restaurants in the kingdom, is owned by four individual shareholders, including chairman and chief executive Abdulmohsen Bin Abdulaziz Al Yahya, according to data from Zawya, a Thomson Reuters unit.

Abraaj, the Middle East's largest private equity firm, has recently roped in TPG to the bidding process and was previously bidding solely for the stake, the sources said, speaking on condition of anonymity as the matter has not been made public.

Kudu is worth around 2 billion riyals ($533.3 million) based on a valuation of around 20 times earnings, one of the sources said. Kudu is expected to have net income of around 100 million riyals this year, the source said.

KKR, TPG and Abraaj all declined to comment, while Kudu could not be reached for comment.

Reuters reported in June that a majority stake in the business has been put up for sale and KKR was one of the potential bidders.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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