(CBN-Global) April 20 -- A consortium backed by China's sovereign wealth fund is in talks to buy Yum Brands' mainland unit, which includes KFC and Pizza Hut outlets across the country, CBN learned.
The China Investment Corp-backed group, which includes private equity firms KKR & Co and Baring Private Equity Asia, was doing due diligence on the business, which could be valued at $7 billion to USD8 billion, according to the report citing "people with knowledge of the matter."
Keith Meister, a Yum board member and activist investor, told CNBC's "Squawk Alley" that he doesn't know what inspired the valuation number.
"I think people probably confused the revenue of the business with the value of the business. That's the revenue. This is a business is worth a multiple of that in my opinion…," Meister said Tuesday.
Yum has more than 7,100 outlets in China and plans to open a further 600 this year, according to the fast food company's website.