TOKYO: Major Japanese trading house Mitsubishi Corp. is in the final stages of talks to sell all of its shareholdings in KFC Holdings Japan Ltd. to U.S. investment fund Carlyle Group, informed sources have said.

Mitsubishi is expected to make a decision on the sale by the end of May, according to the sources. KFC Holdings Japan runs the Kentucky Fried Chicken restaurant chain in the country.

Carlyle Group apparently aims to take KFC Holdings Japan private by acquiring a 35 percent stake held by Mitsubishi and shares held by others.

KFC Holdings Japan is listed on the Tokyo Stock Exchange’s Standard section. Its market capitalization totals some 110 billion yen.

The company has forecast that its consolidated sales in the year that ended in March rose 10.1 percent from the previous year to 110 billion yen. Its net profit is projected to surge by 52.7 percent to 3.8 billion yen.

Despite the robust earnings, Mitsubishi plans to shift its investment to an even more profitable business.

JIJI Press