McDonald's sells Singapore, Malaysian franchise to Saudi group
Lionhorn is led by Sheik Fahd and Abdulrahman Alireza, who bring 20 years of experience as the DL for the nearly 100 McDonald's restaurants in the Western and Southern regions of Saudi Arabia.
The new DL assumed ownership of the McDonald's business in Malaysia and Singapore on December 1, 2016, which includes a total of 390 restaurants, more than 80% of which were company-owned. Financial terms of the transaction were not disclosed.
Under the DL structure, McDonald's transferred its ownership interest in McDonald's Malaysia and Singapore and granted a license to the DL to run McDonald's restaurant operations in these markets.
The DL partner will provide the capital necessary to support and grow the business and will pay an initial franchise fee and an ongoing royalty to McDonald's. ■