The coffee giant Starbucks is exploring various strategies for its operations in Japan, which may include selling a portion of its ownership stake, according to a Tuesday report from Bloomberg News.
Industry sources familiar with the discussions suggest the potential transaction could fetch between ¥400 billion and ¥500 billion (approximately $2.5 billion to $3.1 billion), with possible buyers including competing companies in the sector and private equity investment groups.
When contacted for comment outside normal operating hours, Starbucks representatives had not yet responded to inquiries about the reported plans. The information in the Bloomberg report could not be independently confirmed.
The Seattle-headquartered coffee company previously acquired full ownership of Starbucks Coffee Japan Ltd in 2014, ending a joint venture arrangement with partner Sazaby League that had been in place since 1995.
Earlier this year in April, Starbucks completed a transaction with Boyu Capital to transfer control of its China business operations, with that deal placing a $4 billion valuation on those assets.
While the company reported its most robust quarterly sales increases in over two years this past April, CEO Brian Niccol’s restructuring efforts are driving up operational expenses, leaving uncertainty about when profitability margins will bounce back.
