Starbucks Acquires Shares in Hang Ting Asia Pacific

Yesterday, Starbucks announced in Beijing that it had acquired all shares in High Grown Investment Group (Hong Kong) Co., Ltd., a controlling shareholder of Beijing Meida Coffee Co., Ltd., from Handy Asia Pacific and other shareholders. So far, Starbucks has ended its eight-year cooperation with venture capital firm H&Q Asia Pacific, adjusted its business model in China, and will conduct more business in China in the form of a direct-operated store rather than an alliance.

China is the largest overseas market

Martin Mears, president of Starbucks Coffee International Co., Ltd., said that this share buyback is part of Starbucks' overall business development in China. Of the total 20,000 stores Starbucks plans to open in the international market, half will fall in the Asia Pacific region. At least a few thousand.

According to Wang Jinlong, president of Starbucks Greater China, 2,400 Starbucks new stores are expected to open in the world in 2006 and will increase at a rate of six stores per day next year. In the long run, China is Starbucks’ largest overseas market. The Starbucks acquisition of the Beijing and Tianjin coffee business operation rights from Handy Asia Pacific significantly improved Starbucks's controlling stakes in Beijing and Tianjin, which will help Starbucks further improve operational efficiency and accelerate its development in China.

Inconvenience to disclose transaction details

It is understood that Starbucks had offered two U.S. dollar offers - $11.25 million to buy 50% of the shares and $37.5 million to buy 100% of shares, but all were rejected by H&Q Asia Pacific. Yesterday, both Starbucks and Handing Asia Pacific senior officials expressed inconvenience to disclose the transaction details.

Former president of Beijing Meida Starbucks Co., Ltd. and representative of Han Ding Asia Pacific Wang Chaolong will also leave Starbucks. Xu Dalin, President of Prime Asia Pacific, expressed his satisfaction with the sale of shares to Starbucks and withdrew from Starbucks.