Yum strikes deal to sell off part of China unit

Yum Brands, the company behind Pizza Hut, KFC and Taco Bell, has found investors for its China unit as it prepares to spin off the business in October.

The company said Friday that Primavera Capital Group, a China-based private equity firm, as well Ant Financial Services Group, which operates Alibaba's Alipay mobile payments platform, will invest in the company. The two groups will combine to put in a total of $460 million into the Yum China spinoff.

Dr. Fred Hu, will become Yum China's non-executive chairman. He was previously the former chairman of Greater China at Goldman Sachs.

The spinoff is expected to be completed on Oct. 31, with Yum China set to trade on the New York Stock Exchange the following day under the ticker 'YUMC.'

Following food-safety scares, overpriced menu gaffes and pressure from activist investors, Yum Brands said last year that it would spin off its business in China.

Yum China operates the KFC and Pizza Hut brands in mainland China. Between the two brands, Yum China has more than than 7,200 restaurants located in over 1,000 cities in the country. In 2015 the two chains generated over $8 billion in system sales.

Taco Bell is not yet in China but Yum China will have exclusive rights to the brand in the country.

Follow Eli Blumenthal on Twitter @eliblumenthal