SHANGHAI, Dec. 22, 2016 /PRNewswire/ -- Yum China Holdings,
Inc. ("Yum China") (NYSE: YUMC) today* announced that it
received notice of an unsolicited "mini-tender" offer by TRC
Capital Corporation ("TRC Capital") to purchase up to 4,000,000
shares of Yum China's common stock
at a price of US$26.75 per share in
cash. Stockholders are cautioned that the offering price is 4.46%
below the closing price per share of Yum
China's common stock on December 9,
2016, the last trading day before the offer was commenced.
The offer is for approximately 1.0% of the outstanding shares of
Yum China's common stock.
Yum China does not endorse TRC
Capital's unsolicited mini-tender offer and recommends that
stockholders not tender their shares. Yum
China is not associated with TRC Capital, its mini-tender
offer or the mini-tender offer documentation.
Mini-tender offers are not subject to many of the investor
protections afforded to larger tender offers, including the filing
of disclosure and other tender offer documents with the Securities
and Exchange Commission (the "SEC") and other procedures mandated
by U.S. securities laws.
The SEC has cautioned investors that some bidders making
mini-tender offers at below-market prices are "hoping that they
will catch investors off guard if the investors do not compare the
offer price to the current market price." The SEC's guidance to
investors on mini-tender offers is available at
http://www.sec.gov/investor/pubs/minitend.htm. TRC Capital has made
many similar unsolicited mini-tender offers for shares of other
public companies.
Stockholders should obtain current market quotations for their
shares, consult with their broker or financial advisor, and
exercise caution with respect to TRC Capital's mini-tender offer.
Yum China recommends that
stockholders who have not responded to TRC Capital's offer take no
action. Stockholders who have already tendered their shares may
withdraw them at any time prior to 12:01
a.m., New York City time,
on January 12, 2017, in accordance
with TRC Capital's offering documents.
Yum China encourages brokers and
dealers, as well as other market participants, to review the SEC's
letter regarding broker-dealer mini-tender offer dissemination and
disclosure at
http://www.sec.gov/divisions/marketreg/minitenders/sia072401.htm.
Yum China requests that a copy of
this press release be included with all distributions of materials
relating to TRC Capital's mini-tender offer related to shares of
Yum China's common stock.
*(Dec. 22, 2016 US Eastern time, Dec. 23, 2016 in
China)
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About Yum China Holdings
Yum China Holdings, Inc., with executive offices in Shanghai, China, is a licensee of Yum! Brands
in mainland China. It has exclusive rights in mainland China to
KFC, China's leading quick-service restaurant concept, Pizza Hut,
the leading casual dining restaurant brand in China, and Taco Bell, which is expanding
globally and opening in China in
2016. Yum China also owns the Little
Sheep and East Dawning concepts outright. Yum China is well positioned for growth thanks
to its strong competitive position, integration of its brands into
Chinese popular culture and consumers' daily lives, expanding
geographic footprint in China and
existing operational expertise. It has a strong capital position,
no external debt and expects to continue growing its system sales
and profit by adding new restaurants and through growing same-store
sales. Yum China has more than 7,300
restaurants and more than 400,000 employees in over 1,100 cities,
and generated over $8 billion in
system sales in 2015. A new generation of younger consumers who are
digitally sophisticated and brand driven are fueling growth in
consumption in China. The ongoing
growth of the middle class and urban population in China is expected to create the world's
largest market for restaurant brands, with Yum China poised to be the market leader.
Media Contact
Forest Liu, +86 21 2407 7505
Director, Financial Media
Investor Relations Contact
Christie Ju, +86 21 2407 8090
Vice President, Investor Relations
Michelle Shen, +86 21 2407
8260
Director, Investor Relations
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SOURCE Yum China Holdings, Inc