MALAYSIAN’S QSR Brands, the operator of fast food chains KFC and Pizza Hut in South-east Asia, has indefinitely shelved plans to list on the local stock exchange as its businesses have been affected by boycott campaigns over Israel’s military offensive in Gaza, two sources familiar with the matter told Reuters.

Plans for QSR to hold an initial public offering that could raise up to US$500 million have repeatedly stalled since 2017 due to, among others, worries that poor economic conditions could pose risks to its valuation.

Such concerns have grown amid an ongoing boycott campaign in Muslim-Majority Malaysia, a staunch supporter of the Palestinians, against some Western fast food brands over their perceived links to Israel, the sources said.

Malaysia’s largest pension fund, the Employees Provident Fund (EPF), and European-based private equity firm CVC Capital Partners have paused the sale of their combined 44 per cent stake in QSR due to businesses affected by the boycott campaigns, according to the two people, who declined to be named due to sensitivity of the matter.

CVC has been considering selling its stake in QSR since last year, following the IPO delays, Reuters reported earlier this month.

CVC declined to comment.

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QSR, EPF and QSR’s largest shareholder – Malaysian state agency Johor Corp – did not respond to requests for comment.

QSR said this week KFC Malaysia has temporarily closed outlets in the country due to challenging economic conditions. Local media reports said the closures were a result of the boycott campaign.

Other major fast food brands such as McDonald’s and Starbucks have also been targeted by boycotts in Malaysia, despite attempts by the operators of their franchises to distance themselves from the Israel-Hamas war. REUTERS