Role:

1. Yum China has earned a proud position in the retail and restaurant industry. And China's big cities and towns are still investing in new transportation hubs, shopping centers, and a wide range of physical and digital infrastructures, which will surely continue to drive consumption and contribute to strong growth and business expansion in the retail and restaurant industry.

2. This partnership will help Yum China provide world-class mobile payment services to the tens of millions of consumers owned by its brands. These services include the convenient Alipay platform, which will significantly reduce the time consumers spend in line at restaurants, and membership programs that will help Yum China better manage customer relationships as well as marketing.

3. The investment will enable Chunghwa Capital and Ant Financial to have extensive business experience and relationships, which will enable Yum China to gain significant complementary benefits from the investment.

Expanded profile:

Focusing on the introduction of these two as strategic investments:

Facts show that Yum Brands is the world's largest restaurant group, with more than 35,000 restaurant chains in more than 110 countries and territories and 100 more than 10,000 employees.

Its subsidiaries include KFC, Pizza Hut, Little Sheep, Oriental White, Taco Bell, A&W and Long John Silver's (LJS), with products such as cooked chicken, pizza, hot pot, Chinese fast food, Mexican-style food and seafood restaurant chains.

Under the agreement, Chunghwa Capital and Anthem will invest $410 million and $50 million, respectively, in Yum China, at a price per share based on the volume-weighted average price of Yum China's shares for the period of 31 to 60 days after the completion of the spinoff, with an 8 percent discount, and with the final number of shares (within set upper and lower bounds) adjusted accordingly, depending on that price.

Spring Capital and Anthem also jointly **** have two tranches of warrants exercisable over five years to acquire approximately 2 percent of Yum China's common stock in each tranche at exercise prices of $12 billion and $15 billion in equity value, respectively.

Yum, however, did not announce the exact shareholdings of the two. According to the Wall Street Journal, Ant Financial and Chunghwa Capital hold between 4 percent and 6 percent of Yum China. This shareholding is still only a small and medium-sized shareholder status, not to talk about acquisition. That said, Yum is focusing on bringing in those two as strategic investments as it spins off its business.

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