The sale process of KFC and Pizza Hut's operator Yum! Brands Inc. has been delayed, as potential bidders failed to submit their offers by the deadline, sources familiar with the matter revealed.

Aspiring acquirers, including Singapore's Temasek Holdings Pte and China's Primavera Capital Ltd., failed to submit their respective bids for a minority stake in the business, explaining they were put off by the new terms set by Yum. The sale process has been delayed for at least several weeks, another insider said.

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Under the new policy, the Louisville-based firm would no longer pay for the royalties to use any new products developed in China and would be free from advertising spending obligations. Furthermore, the suitors disapprove of the $10 billion valuation for the China unit, which comprises over half of Yum's revenue.

In addition, investors were only informed of the new terms just days before the deadline. Yum reportedly aimed to grant only one bidder exclusive negotiating rights after all suitors have laid their cards on the table.

According to Bloomberg, in 2015 Yum bowed to activist pressure and agreed to separate its China business, after it experienced a sales slump following a food-safety scandal. Since the announcement in October, KFC in China saw stronger same-store sales results; however, Pizza Hut continues to falter.

Meanwhile, the transaction is expected to be completed by the end of this year. Following the spin-off, Yum China will then become a franchisee of Yum! Brands in China.

TagsYum! Brands, KFC, pizza hut, Temasek Holdings Pte, Primavera Capital, food chain, china