- July 27, 2021
- Posted by: Stratford Team
- Category: Business
- To sell 17.5% stake in JV to local partner E-Mart for $411 mln
- E-Mart will own 67.5% after Starbucks exit
- GIC will own 32.5% stake
SEOUL, July 27 (Reuters) – Starbucks Corp (SBUX.O) is exiting its joint venture in South Korea, seen valued at over $2 billion, by selling a part of its stake to local partner E-Mart Inc (139480.KS) and the rest to Singapore’s sovereign wealth fund, GIC.
E-Mart, one of the largest retailers in South Korea that currently owns half the JV, will buy an additional 17.5% stake in Starbucks Coffee Korea for $411 million, it said in a filing on Tuesday. It will continue to operate the Starbucks stores. GIC will own the remaining 32.5%.
This suggests a $2.35 billion valuation for the entire business, and that GIC will pay more than $700 million for its stake, according to Reuters calculations.
GIC declined to comment on the deal value.
Starbucks said the deal is expected to be completed over the next 90 days. The U.S. coffee giant counts…
