KUALA LUMPUR: Johor Corporation (JCorp) and private equity firm CVC Capital Partners are reportedly seeking buyers for the KFC and Pizza Hut fast-food restaurant businesses operated by QSR Brands (M) Holdings Bhd.
A financial portal, citing sources, reported that international investment bank Citi is handling the sale process, identifying foreign investors, particularly those from West Asia, as potential candidates.
Several parties reportedly expressed interest, although discussions remain at an early stage and may not necessarily result in a transaction.
The asking price is said to be one of the key sticking points after one potential buyer reportedly withdrew because the valuation was too high.
According to sources cited in the report, the asking price is around RM4 billion.
JCorp and CVC, together with the Employees Provident Fund (EPF), control the business through Massive Equity Sdn Bhd.
Massive Equity fully owns QSR Brands, which operates the KFC chain in Malaysia, Singapore, Brunei and Cambodia, as well as Pizza Hut outlets in Malaysia and Singapore.
According to the latest information on QSR Brands’ website, the group operates more than 850 KFC restaurants and over 500 Pizza Hut outlets across the region.
JCorp holds a 55.63 per cent stake in Massive Equity, while Melati Asia Holdings Ltd owns 44.19 per cent. The remaining interest is held by several individuals.
Melati Asia is jointly owned by EPF, with a 51 per cent stake, and CVC, with 49 per cent.
The report quoted JCorp group senior general manager of corporate communications Hasnina Hafiz as saying that the group remained focused on developing competitive and resilient businesses across its portfolio.
She said JCorp adopted a disciplined approach in evaluating investment opportunities to create sustainable long-term value.
QSR Brands remained an important component of JCorp’s investment portfolio, while its improved performance reflected progress in operational efficiency and competitiveness, she said.
Any material developments would be announced through the appropriate channels at the appropriate time, she added.
The statement neither confirmed nor denied the reported plans to sell the business. CVC and Citi declined to comment further.
QSR Brands’ performance had previously come under pressure from changing consumer spending patterns, rising operating costs and boycott campaigns triggered by the Israel-Palestine conflict since October 2023.
However, JCorp said in June that QSR Brands’ revenue for the financial year ended Dec 31, 2025, rose 19 per cent to RM3.85 billion.
QSR Brands also returned to profitability following measures to improve operational efficiency, optimise its portfolio, enhance customer experience and tighten cost controls. The amount of profit was not disclosed.
OneCredit data showed that QSR Brands’ revenue increased from RM4.81 billion in 2022 to RM4.87 billion in 2023, before declining 33.7 per cent to RM3.23 billion in 2024.
The company recorded a pre-tax profit of RM49.58 million in 2022, followed by pre-tax losses of RM66.2 million in 2023 and RM332.67 million in 2024.
In 2012, JCorp, together with EPF and CVC, acquired QSR Brands and its subsidiary KFC Holdings (M) Bhd in a transaction valued at RM5.2 billion.
The transaction, completed in February 2013, resulted in both companies being delisted and taken private.