Days after being launched, Singapore’s Hallyu Ventures (HVPL) has spent US$13.8 million to take a 38 per cent shareholding in South Korean coffee chain Caffe Bene, which has outlets in 14 countries.
HVPL is a joint venture between Future Investment Holdings (FIHPL), a wholly owned subsidiary of Food Empire Holdings, and Sweet Blossom Holdings (SBHL), a wholly owned subsidiary of Eastern Valley Group, part of Indonesian conglomerate Salim Group.
FIHPL holds 51 per cent shares in the joint venture, launched with the aim of investing in F&B companies in east and north-east Asia, as well as South Korea.
Hallyu Ventures is now Caffe Bene’s second-largest shareholder, and its involvement is expected to enable the brand to enhance its competitive power as the top coffee franchise company in Korea.
“It will also make it possible to lead in both the local and global market, with Caffe Bene management in Korea focusing on the local market while the overseas partners expand its global market influence,” says the company.
K3 is Caffee Bene’s largest shareholder with 52 per cent. However, Hallyu Ventures plans to invest further this year to strengthen its position as a strategic investor, reports The Korea Times.
Caffe Bene Korea is focusing on international expansion after reaching saturation point in its own market with a network of 810 stores. It has more than 500 stores in China with a short term target of 1000, and two in the US. It will also take its brand to the Middle East after signing a franchise agreement with Saudi Arabia-based Keden Group.