Starbucks 'seeks bids for China business'

Starbucks has asked a shortlisted group of potential bidders to submit nonbinding bids for a stake in its China business within the next two weeks, two people with knowledge of the matter said.

- KANE WU JULIE ZHU

The US coffee shop chain invited interested parties — including private equity firms Carlyle, EQT, Hillhouse Investment and Primavera Capital — to attend management presentations where it would disclose financial and operational details of its China business, said one of the people as well as a third person with knowledge of the presentations.

Other potential bidders include Bain Capital, KKR & Co and technology major Tencent, said one of the first two sources and two other people familiar with the matter.

A new partner in China could add impetus to a business whose market share has shrunk by more than half in the past five years, as low-price local rivals grow apace while consumers become increasingly cost-conscious in a slumping economy.

In May this year, Starbucks began the sale by inviting interested parties to answer questions about their businesses by late June, Reuters previously reported.