HONG KONG, Sept. 4, 2020 /PRNewswire/ -- Yum China Holdings,
Inc. (the "Company" or "Yum China")
(NYSE: YUMC), China's largest restaurant company in terms of 2019
system sales, today announced the pricing of its global offering
(the "Offering") of 41,910,700 new shares of common stock (the
"Shares") (subject to the over-allotment option), which comprises
an international offering and a Hong
Kong public offering. The final offer price for both the
international offering and the Hong
Kong public offering (the "Offer Price") has been set at
HK$412.00 per Share (or approximately
US$53.16 per Share). The Company has
set the Offer Price by taking into consideration, among other
factors, the closing trading price of the shares on the New York
Stock Exchange ("NYSE") on September 3,
2020 (the last trading day before pricing). Subject to
approval from The Stock Exchange of Hong Kong Limited (the "SEHK"),
the Shares are expected to begin trading on the Main Board of the
SEHK on September 10, 2020 under the
stock code 9987. The Offering is expected to close on the same day,
subject to customary closing conditions.
The Company's shares will continue to be listed and traded on
NYSE. Upon the secondary listing in Hong
Kong, the Hong Kong-listed
shares will be fully fungible with the shares listed on the
NYSE.
In connection with the Offering, the Company has granted the
international underwriters an over-allotment option, exercisable
from September 4, 2020 until 30 days
thereafter, to purchase up to an additional 6,286,600 Shares,
representing not more than 15% of the number of Shares initially
available under the Offering, at the Offer Price. The gross
proceeds to the Company from the Offering, before deducting
underwriting fees and offering expenses, are expected to be
approximately HK$17,267 million
(equivalent to approximately US$2,228
million) or approximately HK$19,857
million if the over-allotment option is exercised in full
(equivalent to approximately US$2,562
million).
The Company plans to use the net proceeds from the Offering i)
to expand and deepen its restaurant network, ii) to invest in
digitalization and supply chain, food innovation and value
proposition, and high-quality assets, as well as iii) for working
capital and general corporate purposes.
Goldman Sachs (Asia) L.L.C. is
the sponsor, joint global coordinator, joint bookrunner and joint
lead manager for the Offering. Citigroup Global Markets Asia
Limited, CMB International Capital Limited and UBS AG Hong Kong
Branch are acting as joint global coordinators, joint bookrunners
and joint lead managers.
A shelf registration statement on Form S-3 (File No. 333-248449)
was filed by the Company with the U.S. Securities and Exchange
Commission (the "SEC") and has become effective. A preliminary
prospectus supplement and accompanying prospectus relating to and
describing the terms of the Offering were filed with the SEC on
August 28, 2020. A final prospectus
supplement and accompanying prospectus relating to and describing
the terms of the Offering will be filed with the SEC and made
available on the SEC's web site at www.sec.gov. Copies of the
final prospectus supplement and accompanying prospectus relating to
the Offering may also be obtained, when available, by contacting
Yum China Holdings, Inc., 7100 Corporate Drive, Plano, Texas 75024, United States, telephone 1-469-980-2898.
The Offering is being made solely by means of the prospectus
supplement and the accompanying prospectus. This press release does
not constitute an offer to sell or the solicitation of an offer to
buy the shares, nor will there be any sale of the shares in any
state or other jurisdiction in which such offer, solicitation or
sale is not permitted.
About Yum China Holdings, Inc.
Yum China Holdings, Inc. is a licensee of Yum! Brands in
mainland China. It has exclusive rights in mainland China to KFC,
China's leading quick-service restaurant brand, Pizza Hut, the
leading casual dining restaurant brand in China, and Taco Bell, a California-based restaurant chain serving
innovative Mexican-inspired food. Yum
China also owns the Little Sheep, Huang Ji Huang, East Dawning and COFFii &
JOY concepts outright. Yum China
also partners with Lavazza to explore and develop the Lavazza
coffee shop concept in China. The
Company had 9,954 restaurants in over 1,400 cities and towns at the
end of June 2020.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including our
expectations with respect to the completion of the Offering and
listing on the SEHK and the use of proceeds from the Offering. We
intend all forward-looking statements to be covered by the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements generally can be identified by
the fact that they do not relate strictly to historical or current
facts and by the use of forward-looking words such as "expect,"
"expectation," "believe," "anticipate," "may," "could," "intend,"
"belief," "plan," "estimate," "target," "predict," "project,"
"likely," "will," "continue," "should," "forecast," "outlook" or
similar terminology. These statements are based on current
estimates and assumptions made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that we believe are
appropriate and reasonable under the circumstances, but there can
be no assurance that such estimates and assumptions will prove to
be correct. Forward-looking statements include, without limitation,
statements regarding the future strategies, business plans,
investment, dividend and share repurchase plans, earnings,
performance and returns of Yum
China, anticipated effects of population and macroeconomic
trends, and the expected impact of the COVID-19 outbreak, the
anticipated effects of our innovation, digital and delivery
capabilities on growth and beliefs regarding the long-term drivers
of Yum China's business.
Forward-looking statements are not guarantees of performance and
are inherently subject to known and unknown risks and uncertainties
that are difficult to predict and could cause our actual results or
events to differ materially from those indicated by those
statements. We cannot assure you that any of our expectations,
estimates or assumptions will be achieved. The forward-looking
statements included in this press release are only made as of the
date of this press release, and we disclaim any obligation to
publicly update any forward-looking statement to reflect subsequent
events or circumstances, except as required by law. Numerous
factors could cause our actual results or events to differ
materially from those expressed or implied by forward-looking
statements, including, without limitation: whether we are able to
achieve development goals at the times and in the amounts currently
anticipated, if at all, the success of our marketing campaigns and
product innovation, our ability to maintain food safety and quality
control systems, changes in public health conditions, including the
COVID-19 outbreak, our ability to control costs and expenses,
including tax costs, as well as changes in political, economic and
regulatory conditions in China. In
addition, other risks and uncertainties not presently known to us
or that we currently believe to be immaterial could affect the
accuracy of any such forward-looking statements. All
forward-looking statements should be evaluated with the
understanding of their inherent uncertainty. You should consult our
filings with the Securities and Exchange Commission (including the
information set forth under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K,
subsequent Quarterly Reports on Form 10-Q and other reports we file
with the SEC) for additional detail about factors that could affect
our financial and other results.
Investor Relations
Contacts: Tel: +86 21 2407
7556 / +852 2267 5801 IR@YumChina.com
|
Media
Contacts: Yum
China Tel: +86 21 2407
7510 Media@YumChina.com
|
Linda Pui, Citigate
Dewe Rogerson Tel: +852 3103
0118 / +852 9700 0178 linda.pui@citigatedewerogerson.com
|
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SOURCE Yum China Holdings, Inc.