Shinsegae Group acquires 17.5 pc additional stake in Starbucks Korea
Jul 28, 2021
Seoul [South Korea], July 28 (ANI/Global Economic): Shinsegae Group will acquire an additional stake in Starbucks Coffee Korea and become the largest shareholder.
E-Mart announced on the 27th that it will acquire an additional 17.5% of Starbucks Coffee Korea's 50% stake held by Starbucks Coffee International. The acquisition is 700,000 shares, and the acquisition amount is 474.25 billion won.
Shinsegae Group will have a 67.5% stake in Starbucks Coffee Korea, including a 50% stake that it already holds. The remaining 32.5% stake will be acquired by the Government of Singapore Investment Corporation (GIC), a Singaporean sovereign wealth fund, from a long-term investment perspective.
Starbucks Korea is a joint venture established by Shinsegae Group's E-Mart and Starbucks Coffee International with 50% investment each. Shinsegae Group's Vice Chairman Chung Yong-jin brought Starbucks to Korea after his studying at Brown University in the U.S. Shinsegae Group has maintained and developed its cooperative relations with Starbucks headquarters in the U.S. since opening its first Starbucks branch in front of Ewha Woman's University in 1999.
Vice-Chairman Chung uploaded a video on Starbucks Coffee Korea's official YouTube channel in December last year to celebrate 21st anniversary of Starbucks, and said, "I introduced Americano for the first time as brewed coffee, and there were many customers looking for sugar and cream due to its unfamiliar taste."
Last year, before the end of last year's contract between Shinsegae and Starbucks, there was news that Shinsegae Group would sell its stake in Starbucks. However, as Starbucks continues to grow despite the COVID-19 pandemic, it is analyzed that Shinsegae has changed its strategy to acquire shares instead of selling them. Shinsegae Group explained, "The company decided to acquire additional shares after discussions for new growth in the Korean market."
Starbucks Korea surpassed 1 trillion won in sales in 2016 in 20 years since its first entry into Korea in 1997. Also, the sales increased by 4.1% year-on-year to 1.9284 trillion won last year, despite the spread of COVID-19. However, operating profit decreased 6.1by 6.1% to 164.4 billion won. (ANI/Global Economic)
