Yum China shares rise after report that it rejected buyout offer

Yum China shares surged as much as 12 percent on Tuesday after a Wall Street Journal report that the company rejected a buyout offer from an investor group led by Hillhouse Capital, citing sources.

The media outlet said the offer valued the company at $46 per share or more than $17 billion. The group that made the buyout offer for Yum China also included private-equity firms KKR and Baring Private Equity Asia, as well as Chinese sovereign-wealth fund China Investment Corp., according to people familiar with the matter.

Yum China, which spun off from Yum Brands in 2016, manages Taco Bell, KFC and Pizza Hut restaurants in the country.

Yum China did not immediately respond to a request for comment from CNBC.

Shares of the company opened at $36 on Tuesday and were initially halted following news of the buyout offer.

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