Carlyle Group Inc is considering bringing in fresh backers for its investment in McDonald’s Corp‘s China operations, seeking a valuation of $8-10 billion for the business, Bloomberg News reported on Friday.

The US-based private equity firm has been discussing various options with financial advisers for its stake in McDonald’s China, two people with knowledge of the matter told Reuters.

The options include setting up a continuation fund for the asset, the people said, declining to be identified because the information is confidential.

The continuation fund structure would allow Carlyle to sell part of its holdings in McDonald’s China while introducing new investors into the company, they said.

The discussions are at an early stage and Carlyle has yet to decide on the final option, the people said.

Bloomberg said in its report that Carlyle, which controls McDonald’s China along with Trustar Capital, could sell part of their stakes in the fast-food giant in the deal while still retaining control, citing people familiar with the matter.

Carlyle declined to comment. McDonald’s and Trustar did not immediately respond to a Reuters request for comment.

In 2017, the U.S fast-food chain agreed to sell 80% of its China and Hong Kong business to China’s state-backed conglomerate CITIC 0267.HK and Carlyle for up to $2.1 billion. Trustar Capital is a private equity affiliate of CITIC Capital Holdings.

In 2020, CITIC Ltd said it would sell a 22% stake in McDonald’s China for at least 2.17 billion yuan.

Reuters