Starbucks' business in China has reportedly attracted the interest of several strategic investors with a stake purchase offer that values the company at as high as $10 billion (RM42.5 billion), CNBC reported on Wednesday.
Among the firms said to be competing for the stake are Centurium Capital, a shareholder in Starbucks' local rivals Luckin Coffee and Hillhouse Capital, as well as US firms such as Carlyle Group and KKR & Co., which are also reportedly on the list of bidders.
So far, Starbucks and several of the firms involved have not issued any statements in response to the media, while Centurium declined to comment further.
Starbucks is currently reviewing offers from about 30 private equity firms, including local and international investors. The shortlisting process of bidders is expected to take place within two months, but the full transaction is not expected to be finalized this year.
The move comes as Starbucks seeks to revive its global performance under CEO Brian Niccol after losing market share in China to local rivals such as Cotti Coffee and Luckin Coffee that offer lower prices.
While denying speculation about a full sale of its China operations, Starbucks is reportedly exploring strategic partnerships, including collaborations with new investors. It is understood that Starbucks will retain a 30% stake, with the rest being distributed among several investors.
Last year, Starbucks also took steps to lower the prices of some of its products in China as part of a strategy to remain competitive in an increasingly competitive market. The country is now Starbucks' second-largest market with 7,594 stores.
In its latest quarterly financial report, Starbucks' sales in China were reported to have remained flat, halting a four-quarter decline.
