GEN Korean BBQ chain operator GEN Restaurant Group has received a non-binding letter of intent (LOI) from a multi-concept restaurant operator to acquire its US restaurant operations and take over related leases.

The LOI outlines a potential transaction worth $100m for the restaurant operations.

However, the company did not disclose the identity of the prospective buyer.

Under the indicative terms, GEN would retain 100% ownership of its consumer packaged goods (CPG) and retail business.

The proposed deal would shift GEN’s strategy toward becoming a pure-play CPG company.

GEN said the structure could deliver value to shareholders in two ways.

This includes a stronger balance sheet from the restaurant sale, paired with continued ownership in a packaged-goods business that management said is “rapidly growing”.

GEN chairman and CEO David Kim said: “Receiving this proposal is a testament to the GEN brand and the value we have already built.

“Our board of directors, together with our financial and legal advisors, will carefully review and evaluate the proposal to determine the path that is in the best interests of the company and all its shareholders.

“We believe a transaction of this nature could make makes strategic sense: focusing GEN entirely on our CPG business, where revenue growth is accelerating rapidly.

“CPG growth requires significantly less capital than restaurant expansion, and we believe that positions us well for the future.”

GEN Korean BBQ runs 54 restaurants in the US and is claimed to be one of the largest Asian casual dining concepts in the country.