US investment fund to acquire fast-food chain KFC Japan

A US investment fund has launched a takeover bid for the operator of the Kentucky Fried Chicken fast-food chain in Japan.

The Carlyle Group announced on Monday it will offer 6,500 yen, or over 40 dollars, per share to win control of KFC Holdings Japan. It aims to take the fast food chain private.

Trading giant Mitsubishi Corporation is the largest stockholder of KFC Japan, owning more than 35 percent of the shares.

The US fund plans to turn KFC Japan into a wholly owned subsidiary and delist its shares. The cost of the acquisition is expected to total more than 860 million dollars.

Mitsubishi says it decided to sell its stake in order to strategically reorganize its business portfolio.

KFC Japan will recommend that its shareholders accept the tender offer. Company officials say they have concluded that the deal would help improve the chain's value by allowing accelerated opening of outlets and changes to its menu offerings.