Starbucks is weighing options for its Japanese business, including a stake sale, Bloomberg News reported on Tuesday.
A stake sale might be valued at ¥400 billion (A$3.5 billion) to A$4.4 billion, possibly attracting interest from other industry players and private equity firms, the report added, citing people familiar with the matter.
Starbucks did not immediately respond to Reuters‘ request for a comment outside regular business hours. Reuters could not immediately verify the report.
In 2014, the company bought the remaining stake in Starbucks Coffee Japan Ltd, which had operated as a joint venture between Starbucks and its partner, Sazaby League, since 1995.
The Seattle-based coffee chain closed its deal with Boyu Capital to sell control of its Chinese operations in April, valuing the business at A$5.6 billion.
Starbucks posted its strongest quarterly sales growth in two and a half years in April, but as costs rise faster under CEO Brian Niccol’s turnaround strategy, questions remain as to how quickly profit margins can recover.
- Reporting by Anusha Shah in Bengaluru; Editing by Rashmi Aich, of Reuters.
