Starbucks considering sale of China business – Caixin Global
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Starbucks (NASDAQ:SBUX) is reportedly considering a full sale of its China operations, according to sources cited by Caixin Global.
Shares were launched higher on the report but have since retreated to earlier levels, leaving a modest gain in after-hours trading.
The company has reportedly held talks with a dozen interested parties that include private-equity firms Hillhouse Capital Group, FountainVest Partners, and Trustar Capital.
The news follows comments from Starbucks (NASDAQ:SBUX) CEO Brian Niccol that the company has received interest in its China business.
“People see the value of the Starbucks brand,” Niccol said earlier this month to The Financial Times. “They see the coffee category is growing. I think they’d love to be partnering with us in figuring out how we take this from 8,000 to 20,000 [stores].”
A potential sale could help the company exit ongoing challenges, including stiff competition from rivals like Luckin Coffee (OTCPK:LKNCY) and a sluggish Chinese market.
Starbucks (NASDAQ:SBUX) has not yet responded to Seeking Alpha’s request for comment.
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