Starbucks denies reports it plans to fully exit China

Starbucks has responded to rumours of a potential stake sale in its China operations after reports resurfaced that the American coffee giant is looking for buyers for its business in the country. “We see significant long-term potential in the market and are evaluating the best ways to capture the future growth opportunities,” the company said in an official statement. The comment comes after a report in Chinese media outlet Caixin that Hillhouse Capital recently participated in a reverse management roadshow organised by Starbucks China, during which investors visited local operations. Other participants reportedly included Carlyle and Centrin Capital. A source told local business media outlet China Entrepreneur that some 20 institutions have held talks with Starbucks China, with Hillhouse’s involvement still at a very early stage. The coffee chain’s China unit was reportedly valued at between $5 billion and $6 billion. Initial talks about a possible stake sale surfaced in November last year. [Caixin, China Entrepreneur, in Chinese]