Starbucks’ China venture has recently garnered substantial interest for a potential stake sale. The unit is speculated to be worth up to a staggering $10 billion. According to insider information, a multitude of entities is in the race for the stake, including Asian private equity firms Centurium Capital and Hillhouse Capital, as well as American counterparts Carlyle Group and KKR & Co.
The multinational coffee company may retain a 30% stake in its China business if a deal goes through. The remaining portion would be divided among several investors, each maintaining a stake of less than 30%.
At this point, there has been no official response from Starbucks, Centurium, Hillhouse, Carlyle, or KKR regarding these claims. Until now, this information has not been independently corroborated.
Despite the current speculation, Starbucks clarified last month that it is not considering a complete sale of its China operations. This announcement followed the initiation of a formal sale process for Starbucks’ China operations that commenced in May.
Starbucks has received non-binding offers from approximately 30 domestic and foreign private equity firms. The coffee giant is currently assessing these proposals, the proposed deal structures, and the value creation plans presented by the bidders.
According to sources, the shortlist of potential investors could be ready within the next two months. However, it is unlikely that the transaction will be finalized by the end of this year.
Who are some of the potential buyers for Starbucks’ China business?
Potential buyers include Asia-based private equity firms Centurium Capital and Hillhouse Capital, as well as US firms Carlyle Group and KKR & Co.
What percentage of the Starbucks China business might the company retain after the sale?
Starbucks may retain a 30% stake in its China operations post-sale.
When is the deal likely to be finalized?
While this is subject to change, the deal is currently unlikely to be completed before the end of this year.
