LOUISVILLE, Ky. – Potential bidders for Yum! Brands’ China business missed a deadline to submit bids for a minority stake in the unit, Bloomberg reported.
According to the report, several companies in the running for Yum! China were put off by new terms from Yum! The Louisville, Kentucky-based company said it would not pay royalties for products developed in China, and it would not share the expense of advertising spending by the China business. Bloomberg also reports that potential bidders disagree with the $10 billion valuation for the China unit.
Yum! Brands, which owns KFC, Pizza Hut and Taco Bell, agreed to spin off its China business under pressure from investors. The transaction is expected to be completed by the end of 2016. After the spin-off, Yum! China will become a franchisee of Yum! Brands in mainland China.