Report: McDonald's Received At Least Two Bids For A Stake In Its Japanese Unit, But High Valuation A Concern

According to Nikkei Asian Review, multiple investment firms, including Bain Capital and Permira "likely" submitted an offer to acquire a stake McDonald's Corporation (NYSE: MCD)'s Japanese unit.

Nikkei Asian Review reported back in December 2015 that McDonald's has been actively looking for a partner with knowledge of the local market to help spur sales.

Related Link: Report: McDonald's Eyeing Sale Of Partial Stake In McDonald's Japan

McDonald's owns a roughly 50 percent stake in McDonald's Holdings (Japan).

Nikkei Asian Review noted that Bain Capital entered Japan in 2006 while Permira already owns a sushi restaurant chain in Japan. As such, both investment firms have acquired the necessary "know-how" to manage investments in Japan.

However, the report added that McDonald's Japan's share price implies a valuation of around $2.83 billion - a figure which "many consider overpriced for the company's earnings ability."

Finally, the report suggested that the investment funds likely offered "significantly less" than what McDonald's is looking for and any future deal may require a compromise from McDonald's head office.