Little Sheep: hot prospects

Background:Little Sheep Group (0968:HKG) is focused on operating Mongol-style hot pot chain restaurants and developing and selling sauces and meat products. The company gained $20m (Rmb 136.6m, €13.3m, £12.2m) and $5m in capital from 3i and Prax Capital respectively in 2006, before listing in Hong Kong in June 2008 to raise HK$779.7m (Rmb 687m, $100.6m, €67m, £61.6m). In March this year, 3i divested its stake to Yum Brands (YUM:NYSE). Just last week Yum Brands bought a further 75.04m shares in Little Sheep at HK$4 each, growing its stake in the company to 27.3%.

China Confidential Funds

China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

Other Articles on this Issue

• The Big Call

  Coal prices, imports to firm

• Consumer China

  Restaurants: a healthy appetite

  Café de Coral

  Ajisen - in favour

  Quanjude: a sitting duck

  Yum Brands' winning recipe

• Financial China

  China takes aim at commodities pricing power

• Funds Data

  Investors reassess Taiwan, Russia

• Postcard From No 528

  Corporate bond market stalked by inflation

• Capital Intensive China

  High prices strain property market, but no end in sight

• Guest Column

  Faith in China rally

• The Best of Chinese Commentators

  What to make of the third quarter

  Casdaq

• Editor's View

  Back to the balancing act

• View issue