SHAREHOLDERS of China's leading domestic hot pot chain, Little Sheep Group Ltd (Little Sheep), have approved a takeover proposal by Yum! Brands Inc (Yum!).

Under the proposal, Yum! will offer Little Sheep independent shareholders HK$6.50 (83 US cents) per share, and will offer HK$4.39 each to holders of Little Sheep options to cancel the options, Yum! said in a press release on Friday.

Yum! will proceed with its takeover process by seeking the approval of the Grand Court of the Cayman Islands at a hearing on January 20.

The arrangement may go into effect on February 1 when Little Sheep will be privatized and become a Yum! subsidiary, the release said.