martinrlee
Starbucks Corporation (NASDAQ:SBUX) has received a lot of interest in the sale of a stake in its China business, according to CEO Brian Niccol.
“People see the value of the Starbucks brand. They see the coffee category is growing. I think they’d love to be partnering up with us in figuring out how we take this from 8,000 to 20,000 [stores],” updated Niccol in an interview with Financial Times.
Earlier this year, Starbucks (NASDAQ:SBUX) began exploring partnership deals and began the process of seeking outside investors for a minority stake in its China business. Letters were sent to potential investors to solicit feedback on the business and growth strategies, with a possible stake sale valued in the billions of dollars.
The company is believed to have received indications of interest from both private equity firms and technology companies. Sources indicate that a mixture of Chinese and global private equity companies are in the mix.
“The strategy in China is we want to be more competitive,” stated Niccol on the overarching plan. He noted that the Seattle-based company is not in a rush to strike a deal.
Shares of Starbucks (SBUX) were down 0.2% in premarket trading to $91.27 vs. the 52-week range of $71.55 to $117.46.
On Seeking Alpha, analyst Steven Fiorillo is strongly bullish on Starbucks (SBUX), while Skeptical12 recently issued a Sell rating.