Meed | Starbucks Mena shares sale on hold

Starbucks Mena shares sale on hold

24 September 2024

Kuwait's AlShaya Group is understood to have put on hold plans to sell about a 30% stake in its Starbucks Middle East, North Africa and Central Asia franchise.

According to a Reuters report, the sale pause came amid boycotts and geopolitical unrest in the region continuing to impact the franchise and hindering bidders' ability to value the business.

Citing sources familiar with the planned transaction, AlShaya is said to be "not in a rush to sell".

The privately owned retailer has been looking to sell a minority stake of about 30% in the business, in a process dubbed "Project Emerald", Reuters previously reported.

Neither AlShaya Group nor Starbucks commented on the matter.

MEED understands the sale has drawn interest from US private equity firm Apollo Global Management as well as Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF).

Gaza stance

The potential sale of the minority stake is set against a backdrop of sustained boycotts against Starbucks in the Mena region, which the company believes stem from "misconceptions" about its stance on the Gaza conflict.

In December, in an attempt to clarify its position and counter the spread of "inaccurate information", the US-headquartered coffee chain introduced a new section on its website called Starbucks for the Record.

In April this year, Starbucks and the AlShaya Group committed $3m to World Central Kitchen to provide one million meals to families in Gaza.

AlShaya Group manages Starbucks outlets across 13 Mena countries, including Bahrain, Egypt, Qatar, Saudi Arabia and the UAE.

Photo credit: Pixabay

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Jennifer Aguinaldo