If you sign up for our newsletter, you'll get the latest news on the region.
People familiar with the matter say Saudi Arabia's wealth fund is in the running to buy a minority stake in Starbucks.
The $620 billion Public Investment Fund is leading a group of investors vying for a stake in the business and could reach an agreement in the coming weeks. One of the people said that private equity firms could invest in the company's debt.
According to the report, prospective buyers expected bids to value the business closer to $11 billion, despite the fact that Alshaya had indicated it was worth fifteen billion dollars.
No final decisions have been made and negotiations are still going on. The representatives for the PIF and Alshaya didn't want to comment.
The PIF is investing in companies across a wide range of industries as part of a key role. The fund set up the Saudi Coffee Co. and said it would invest more than $300 million over the next 10 years to raise the kingdom's annual coffee production to 2,500 tons from 300 tons.
The Starbucks business would give PIF instant access to over 1,700 outlets in 14 markets that span some of the biggest emerging economies.
One of the largest operators of popular retail brands in the Middle East is believed to be the oldest company in Kuwait. Starbucks is Alshaya's largest franchise.
The group has more than 4,000 stores in the region, with a total of 70 brands. H&M, P.F. Chang's and The Body Shop are part of the portfolio.
Nicolas Parasie and Archana Narayanan assisted.
All Rights Reserved © 2024
