August 28, 2018 / 5:15 PM / 23 days ago

REFILE-UPDATE 2 -Fast-food chain Yum China rejects Hillhouse buyout offer - source

(Corrects typo in signoff, no change to text)

* Hillhouse offers $46 per share for Yum China

* Consortium includes Baring Private Equity Asia

* Yum China’s board decided not to pursue the offer

* Stock rises 3.9 pct

HONG KONG, Aug 29 (Reuters) - Yum China Inc has rejected a buyout offer from a consortium of investors led by Chinese investment firm Hillhouse Capital Group, a person close to the situation said.

The Hillhouse-led consortium, which would also include regional investment house Baring Private Equity Asia, expressed an interest to offer $46 per share for the biggest fast-food chain in China, the person said.

Yum China’s board decided not to pursue the offer, which did not include detailed terms or the structure of the investor consortium, the person added.

Yum China did not have any immediate comment. Hillhouse did not immediately respond to a request for comment.

Sources earlier told Reuters investment firms including KKR & Co and Chinese sovereign wealth fund CIC were also considering joining the bid, in what could be one of Asia’s biggest buyouts this year.

Wall Street Journal on Tuesday reported that Yum China had rejected a buyout offer from a consortium of investors that valued the company at more than $17 billion, citing an unidentified person familiar with the matter.

Stock of Yum China rose 3.86 percent on Tuesday.

Reporting by Kane Wu; Editing by Stephen Coates

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