26-07-2021, 07:07 PM
Singapore's sovereign wealth fund GIC Private Ltd. is set to sign an agreement next week to buy a 30% stake in Starbucks Korea from the coffeehouse chain's parent company for 800 billion won ($700 million), according to investment banking sources.
As part of the upcoming deal, Seattle-based Starbucks Corp. is selling its remaining 20% stake in the South Korean joint venture to E-Mart Inc. which will eventually end up with a 70% stake in Starbucks Korea. E-Mart is Shinsegae Group's supermarket chain.
GIC values the country's largest coffeehouse chain at 2.6 trillion won ($2.3 billion), more than double the 1 trillion won estimated back in 2019.
With Shinsegae in charge of its operations, GIC will lead the decision-making process for Starbucks Korea's possible stock market listing after a certain period of time.
But the agreement will not contain a clause that requires Shinsegae to buy back the GIC's stake in case the IPO plan falls through, the sources said on Sunday, denying a local media report that Starbucks Korea's IPO would be a condition attached to the stake sale.
Shinsegae Group, South Korea's retail giant, is looking to create greater synergy from business cooperation with Starbucks, on top of its exclusive right to sell Starbucks goods such as tumblers, water bottles and diaries.
"As the only strategic investor in Starbucks Korea, Shinsegae will be able to explore various business opportunities without limit," said a retail industry source.
As part of the upcoming deal, Seattle-based Starbucks Corp. is selling its remaining 20% stake in the South Korean joint venture to E-Mart Inc. which will eventually end up with a 70% stake in Starbucks Korea. E-Mart is Shinsegae Group's supermarket chain.
GIC values the country's largest coffeehouse chain at 2.6 trillion won ($2.3 billion), more than double the 1 trillion won estimated back in 2019.
With Shinsegae in charge of its operations, GIC will lead the decision-making process for Starbucks Korea's possible stock market listing after a certain period of time.
But the agreement will not contain a clause that requires Shinsegae to buy back the GIC's stake in case the IPO plan falls through, the sources said on Sunday, denying a local media report that Starbucks Korea's IPO would be a condition attached to the stake sale.
Shinsegae Group, South Korea's retail giant, is looking to create greater synergy from business cooperation with Starbucks, on top of its exclusive right to sell Starbucks goods such as tumblers, water bottles and diaries.
"As the only strategic investor in Starbucks Korea, Shinsegae will be able to explore various business opportunities without limit," said a retail industry source.