RIYADH: ¶¶Òõ¶ÌÊÓƵ’s Public Investment Fund is reported to be the front-runner to buy a minority stake in Kuwaiti conglomerate Alshaya Group’s Starbucks Corp. franchise, according to Bloomberg.
The PIF is leading a consortium of investors competing for a stake in the business, people familiar with the matter were quoted as saying, asking to remain anonymous for information privacy.
This PIF-led consortium could reach an agreement in the coming weeks, the people added.Ìý
Private equity firms may invest in the company’s debt alongside the PIF, one of the people said.
Alshaya has valued the business at $15 billion, but prospective buyers are expected to bid atÌýcloser to around $11 billion, according to Bloomberg News.
No final decision has been made and representatives of PIF and Alshaya declined to comment.
As it seeks local economic diversification away from oil, the PIF has been investing in companies across a wide range of industries.
The fund set up the Saudi Coffee Co. in May 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 offer the PIF instant access to around 1,700 outlets in 14 markets that span some of the biggest emerging economies, from ¶¶Òõ¶ÌÊÓƵ to Turkey, Bloomberg said.
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