Starbucks’ business operations in China may soon undergo changes, as several prominent investors have shown interest in acquiring a stake. This signifies a potential valuation of Starbucks’ China unit at approximately US$10 billion.
Among the investors vying for a stake in the coffee giant’s China business are Asia-based private equity firms Centurium Capital and Hillhouse Capital, as well as their US counterparts Carlyle Group and KKR & Co.
According to sources, it is a possibility that Starbucks might retain a stake of 30 percent, with the remainder distributed among a group of purchasers, each owning less than 30 percent. However, the company and the potential buyers have not yet provided any comments on the matter.
Last month, Starbucks confirmed that it does not plan to fully sell off its China operations. This announcement followed the commencement of a formal sales process for its China business in May.
Around 30 domestic and international private equity firms in China have submitted non-binding offers for a stake in Starbucks’ China business. Currently, the company is in the process of evaluating the bids, deal structure suggestions, and value creation proposals from the potential investors.
This selection process is expected to result in a shortlist within the next two months. However, it is unlikely that the entire arrangement will be finalized before the end of this year.
Which companies are vying for a stake in Starbucks’ China business?
Asia-based private equity firms Centurium Capital and Hillhouse Capital, as well as US counterparts Carlyle Group and KKR & Co, have shown interest in acquiring a stake.
How much of a stake might Starbucks retain in its China operations?
Starbucks may retain up to 30 percent stake in its China operations, with the remaining stake distributed among the group of buyers.
Is Starbucks planning a complete sell-off of its China operations?
Last month, Starbucks confirmed that it has no plans to fully sell off its China operations.
