(Yicai Global) Aug. 23 -- Catering giant Yum China Holdings has agreed to purchase a stake in Chinese restaurant chain Huang Ji Huang Group, making a second effort at expanding its collection of local style eateries following the botched takeover of a hot pot chain.

The Shanghai-based spinoff from Pizza Hut and KFC operator Yum! Brands expects to complete the deal in early 2020, it said in a statement yesterday. It still needs to obtain regulatory approval and finalize details, such as the size and price of the stake it will purchase.

Founded in 2004, Beijing-headquartered Huang Ji Huang has more than 640 restaurants around the world, mostly franchises, and runs the Simmer Huang brand of shabu-shabu restaurants and local fast food chain Sanfenbao. Yum China believes the acquisition will give it a stronger foothold in the Chinese-style dining segment, which occupies a large part of the nation's restaurant sector.

The firm will likely be hoping for better results than from its takeover of hot pot chain Little Sheep, which it acquired and privatized from 2012 through 2013 for more than HKD4.6 billion (USD587 billion) but has struggled to maintain amid declining customer numbers.

Little Sheep had 469 stores across China before the acquisition, but Yum China's portfolio of restaurants -- excluding Pizza Hut and KFC -- tallied just 320 as of the end of June, according to its first-half report.

Yum China holds the exclusive rights to run KFC, Pizza Hut and Taco Bell restaurants in China and entirely owns the Little Sheep, East Dawning and Coffii & Joy brands. It had 8,700 restaurants spanning 1,300 Chinese cities as of this year's midpoint.

Editor: James Boynton