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Little Sheep approves Yum! Brands' takeover proposal

January 8, 2012

Yum! Brands Inc. has announced that the proposal for the privatization of China-based Little Sheep Group Ltd. by way of a scheme of arrangement has been approved by the independent shareholders of Little Sheep.

Under the proposal, Yum!, through a wholly owned subsidiary, is offering Little Sheep scheme shareholders HK $6.50 ($0.83 U.S.) cash per scheme share and is offering holders of options to subscribe for shares in Little Sheep HK $4.39 per option to cancel such options.

Little Sheep operates hot pot concept restaurants primarily in China and is headquartered in Baotou, Inner Mongolia, China. Its shares are listed on the Hong Kong Stock Exchange.

Yum! will proceed to the next step of the privatization and will seek the sanction of the scheme by the Grand Court of the Cayman Islands at a petition hearing Jan. 20. Assuming its approval, it is expected to become effective Feb. 1, when Little Sheep will be privatized and will become a subsidiary of Yum!

"We are pleased to see that the Independent Little Sheep Shareholders value the offer provided by Yum! We have a strong commitment to the China market and to the Little Sheep brand. We are confident we can further strengthen Little Sheep's brand, business model and market position," said Jing-Shyh Sam Su, chairman and CEO of Yum! Restaurants China, vice-chairman of Yum! Brands Inc.

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