이 기사는 2022년 02월 18일 08:09 thebell 에 표출된 기사입니다.

Private equity firm Affinity Equity Partners is considering selling its Burger King operations in South Korea and Japan separately, in addition to its initial plan to sell them as a whole.

Affinity Equity Partners has chosen Goldman Sachs to run the sale and started marketing campaigns to potential buyers, industry sources said on Wednesday.

“(The firm) has explained one potential investor that it may sell the operations in South Korea and Japan separately,” a person with knowledge of the PE firm said. The PE firm seems to be open to suggestions, instead of sticking to a simultaneous sale.

Affinity Equity Partners has been widely expected to sell BKR, which operates Burger King Korea, and Burger King Japan Holdings as a whole since it appointed its sale manager and announced its sale process. Yet, some market insiders paid attention whether it will try to sell the operations in a separate bidding as some prospective buyers saw more upside potential in Burger King Japan.

Burger King Korea had 440 restaurants as of January, exceeding McDonald’s 403 stores. South Korea has the largest number of Burger King stores in Asia.

Burger King Japan is considered in the early stages of growth compared to Burger King Korea. Affinity Equity Partners acquired full control over Burger King Japan in 2017. The number of Burger King stores in Japan grew from 95 in 2019 to 146 in 2021 while its rival McDonald’s is running 3,000 stores in the country.

It would be less burdensome for potential buyers to take over the Japanese unit. The price tag of Burger King’s operations in South Korea and Japan is expected to be 1 trillion won ($835 million). The Japanese unit recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of 700 million yen in 2021.

Given that domestic food and beverage franchises were sold at values of about 10 times EBITDA recently, the price tag of Burger King Japan is expected to be about 70 billion won by simply applying its 2021 EBITDA.

Market insiders are paying attention to whether an option of selling the two operations separately will have an impact on the race. The seller would come under pressure if the Japanese business receives positive response while the Korean unit fails to attract enough attention because Burger King Korea has a much higher price tag.

Affinity Equity Partners will prefer the simultaneous sale of the franchise restaurants in the two countries. It will also be difficult for potential buyers to win the race unless they outbid rivals in a possible separate bidding. (Reporting by Gyoung-tae Kim)