McDonald’s set to sell Singapore, Malaysian franchise to Saudi company


McDonald’s is ready to complete a deal to sell 20 year franchise rights for its Singapore and Malaysia outlets to Saudi Arabia’s Reza group for about $400 million.

Reza Food Services Co Ltd, which owns and operates McDonald’s restaurants in the western and southern region of Saudi Arabia, has tapped Malaysian bank CIMB to finance the transaction, said the sources.

The move is a part of McDonald’s plans to involve partners as it undertakes a less capital intensive franchise model in Asia. Basic terms of the deal are finalized and the deal is expected to be completed by the yearend.

As per the sources, CIMB would provide the bulk of the term loan to support the deal, and the financing would be denominated in both Malaysian Singapore currencies.

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