Starbucks shortlists dozen firms including Tencent, for China investment – report

Starbucks (NASDAQ:SBUX) has reportedly shortlisted about a dozen parties, including private equity firms and technology companies, for the second round of a process to invest in its China business.

Boyu Capital, Carlyle Group (NASDAQ:CG), EQT AB (OTCPK:EQBBF), FountainVest Partners, KKR (NYSE:KKR), Hillhouse Investment, and Primavera Capital are among the private equity firms invited to participate, along with tech giants JD.com (NASDAQ:JD) and Tencent Holdings (OTCPK:TCEHY), Bloomberg reported.

The shortlisted firms will be provided access to the coffee chain’s China financials so they can evaluate and prepare bids in the coming months, the report said.

While the Starbucks (NASDAQ:SBUX) turnaround under the direction of CEO Brian Niccol is gathering momentum, the company’s fiscal third-quarter results underscore the task ahead to improve profits and restore positive same-store growth.

On the earnings call, Niccol accepted the company’s challenges and prior mismanagement but assured analysts that despite Wall Street’s reservations, the turnaround is “ahead of schedule.”