McDonald’s has confirmed the first bid for its China and Hong Kong business as it plans to sell the franchise.

Chinese technology and real estate firm Sanpower, in conjunction with the Beijing Tourism Group, has made an offer for the 2,200 chain for an undisclosed amount.

The move comes as McDonald’s competitor Yum Brands also puts plans in place to restructure its China business, with reports that it could spin it off ahead of an IPO in 2017. Both brands are being hit by increasing competition from local rivals and McDonald’s itself has plans to franchise 95% of its worldwide operations.