McDonald's, the world's largest chain of fast food restaurants, has received more than half a dozen bids for its planned sale of China and Hong Kong stores.
The favorite amongst all received bids from Beijing Tourism Group, Sanpower and ChemChina in a deal worth about USD three billion, reports Reuters.
McDonald's is offering a 20-year master franchise agreement to buyers as part of the deal, but has placed restrictions, which has discouraged some private equity firms from participating in the process.
The auction also witnessed global buyout firms such as Bain Capital, TPG Capital and Carlyle Group entering with a view to team up with some of the Chinese strategic bidders.
The other bidders preparing to place first-round bids ahead of Monday's deadline include Beijing Capital Agribusiness Group, McDonald's China partner, and GreenTree Hospitality, the source added.
It was not immediately clear if the last two suitors proceeded with the bids. Oak Brook, Illinois-based McDonald's has hired Morgan Stanley to run the sale of about 2,800 restaurants in China, Hong Kong and South Korea, Reuters previously reported.
The China and Hong Kong business had about USD 200 million in earnings before interest, depreciation and amortization, and could be sold for about 15-16 times its core earnings, taking the deal value to about USD three billion, reported sources.