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Starbucks to exit South Korea venture, sell stake to E-Mart, GIC
E-Mart, which currently owns 50 percent of Starbucks Coffee Korea, said it would acquire an additional 17.5 percent stake that would be worth 474 billion won ($411.89 million).
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Beds are set up in front of a large Starbucks sign at the CenturyLink Field Event Center, which is being turned into a military field hospital for non coronavirus patients during the coronavirus disease (COVID-19) outbreak in Seattle, Washington, U.S. March 30, 2020. (REUTERS/Lindsey Wasson)
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tarbucks Corp said on Monday it will exit any direct ownership in South Korea, its fifth-largest market, selling the 50% stake it owns in a joint venture to local partner E-Mart Inc and Singapore's sovereign wealth fund, GIC.
E-Mart, which currently owns 50 percent of Starbucks Coffee Korea, said it would acquire an additional 17.5 percent stake that would be worth 474 billion won ($411.89 million).
That also suggests a $2.35 billion valuation for Starbucks Coffee Korea, Reuters calculations showed.
GIC will own the remaining 32.5 percent of the venture, Starbucks said.
The US coffee chain operates more than 1,500 stores across 78 cities in South Korea, where 2020 revenue rose 3.2 percent to 1.93 trillion won despite the COVID-19 pandemic.
"As a long-term investor, GIC is confident that Starbucks Coffee Korea will play an important role in setting retail coffee trends and further driving industry growth," said Choo Yong Cheen, GIC's chief investment officer of private equity.
Starbucks said the deal is expected to be completed over the next 90 days. ($1 = 1,150.5800 won).
