- October 26, 2022 / 4 min readCompletion of the transaction is subject to regulatory and governmental approvals, as well as other conditions agreed to by the parties.
Yum! Brands, Inc. (NYSE: YUM) has announced an update on its ongoing process to exit the Russian market.
Yum! Brands has entered into a sale and purchase agreement to transfer ownership of its Russian KFC restaurants, operating system and master franchise rights, including the network of KFC franchised restaurants, to Smart Service Ltd., operated by one of the Company’s existing KFC franchisees in Russia, Konstantin Yurievich Kotov and Andrey Eduardovich Oskolkov.
Under the agreement, the buyer will be responsible for rebranding locations to a non-Yum! concept.
In addition, the buyer will be responsible for retaining the Company’s employees in Russia.
Completion of the transaction is subject to regulatory and governmental approvals, as well as other conditions agreed to by the parties.
Following the completion of the transaction, Yum! Brands will have ceased its corporate presence in Russia.
This builds on Yum! Brands’ prior announcement that it was transferring ownership of KFC to a local operator in Russia. In addition, the Company previously announced that it had completed the transfer of ownership of all Pizza Hut franchise assets to a local operator who initiated the process of re-branding locations to a non-Yum! concept.
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