Yum spin off Yum China,

Before the spinoff, it sold shares to Chinese investment firm Primavera Capital and an affiliate of Alibaba Group Holding Ltd (BABA.N) who will buy a stake in Yum China for $460 million as Yum prepares to spin off the business. Primavera will invest $410 million, while Ant Financial, which runs Alibaba’s Alipay mobile payments platform, will put in $50 million.

The investors will receive warrants to buy an additional 4 percent stake in Yum China in two tranches at valuations of $12 billion and $15 billion, the company said on Friday.

Yum, still the largest fast-food chain in China, has also been losing ground to McDonald’s Corp (MCD.N).

The spinoff is expected on Oct. 31, with Yum China to begin trading on the New York Stock Exchange a day later, the company said on Friday.

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