HONG KONG Oct 30 Private equity firm CVC
Capital Partners is in advanced talks to buy a majority
stake in high-end China restaurant chain South Beauty Investment
Co Ltd for around $300 million, two sources with knowledge of
the matter told Reuters.
A deal to buy South Beauty, which sells mainly Sichuan
cuisine, would be the latest private equity acquisition of a
restaurant chain in China, as choppy public markets in Hong Kong
and tighter credit conditions push company owners to exit
through M&A deals.
Under the deal being discussed, CVC is buying 69 percent of
South Beauty, while the restaurant chain's founder, Zhang Lan
will own a 31 percent stake, Basis Point reported citing sources
CVC has hired Bank of America Corp as an advisor,
and the bank is arranging loan financing of $140 million to back
the acquisition of Beijing-headquartered South Beauty, Basis
Bank of America and CVC declined to comment. South Beauty
did not reply to an email requesting comment. Sources declined
to be identified as the discussions were confidential.