PAG is weighing a sale of Shandong Fengxiang Co., the Chinese chicken meat producer it took private last year, according to people familiar with the matter. The Asian private equity firm has begun early discussions with potential advisers to evaluate options for the poultry business, which operates under the Fovo Foods brand.

Fengxiang could fetch between $700 million and $900 million in a transaction, sources said. The company produces processed and raw chicken products for the Chinese market and exports to other Asian countries, the Middle East, and Europe. PAG acquired Fengxiang through Jingyu Enterprise Development (Shandong) Co. after its 2020 Hong Kong listing.

The deliberations are preliminary and might not lead to a deal, the people cautioned. A PAG representative declined to comment. Fengxiang also owns ready-to-eat chicken-breast brands iShape and Wu Genglu, positioning it as a notable player in China's processed meat sector.