The Carlyle Group’s RM1.94 billion (€464.2 million; $618.9 million) offer to buy fast food restaurant operator QSR from parent company Kulim has been rejected, according to a statement the Malaysian conglomerate submitted to the bourses.
Carlyle had offered to pay RM6.7 per share to acquire all of QSR, which owns the KFC and Pizza Hut fast food chains in Malaysia and Singapore. Kulim has a 57.5 percent stake in QSR as of 30 November.
Carlyle’s offer, which topped an earlier bid of RM5.60 a share offered by Malaysian businessman Halim Saad, was deemed inadequate by the Kulim board.
“As QSR and subsidiaries are currently experiencing a robust growth, the board believes that more value can be realised in the long term and therefore the companies should be retained within the group,” the board said in the statement.
Listed on the Bursa Malaysia in April 2004, QSR operates more than 530 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia, and approximately 230 Pizza Hut shops in Malaysia and Singapore.
Carlyle currently manages over $97.7 billion worth of assets across 78 funds.
The QSR rejection is its second thwarted attempt in the past month to make greater strides across Southeast Asia, where it has thus far had relatively little exposure. The firm was also reportedly one of the initial bidders for Indonesia’s Matahari Hypermart, which is being sold by conglomerate Matahari Putra Prima. However, the firm did not make it to the second round of bidding, according to Reuters.