India, June 16 -- Yum Brands announced on Tuesday that it is selling Pizza Hut in two separate deals worth a combined $2.7 billion. The biggest part of the deal is the sale of Pizza Hut's business outside mainland China to private equity firm LongRange Capital for about $1.5 billion.

Pizza Hut's mainland China business is being sold separately to Yum China for around $1.2 billion. Investors reacted positively to the announcement, sending Yum! Brands stock higher in trading. Yum Brands stock was trading near $158.22 after the news and gained almost 2% in morning trading.

Along with the Pizza Hut sale, Yum Brands also announced a new $4 billion plan to buy back its own shares from the market. Yum said it began looking at options for Pizza...