McDonald’s (mcd) is reportedly looking to sell a big chunk of shares of its Japanese subsidiary.
McDonald’s Holding Co. (Japan) (mdndf) was established in 1971 as a joint venture between McDonald’s and Fujita & Co., each entity owning 50%. Fujita sold most of its stock about 10 years ago, and now Nikkei Asian Review reports that McDonald’s wants to sell 15%-to-33% of its shares, although the publication did not specify where that information came from.
The parent company currently owns about half of the Japanese branch. A sale, which is expected to bring in about $817 million, could potentially make the buyer the largest shareholder. The subsidiary’s stock fell about 8% during Tokyo’s trading day after the news was reported.
According to Bloomberg, McDonald’s Japan has predicted a loss of approximately $314 million this year, a significant jump from 2014’s $180 million loss. While the company’s sales were already unimpressive, they certainly weren’t helped by a string of food safety issues, including foreign objects found in customers’ food and the alleged use of expired meat.