DUBAI/LONDON, Sept 19 (Askume) – Quarantine is selling the Middle East, North Africa and Central Asia Starbucks (SBUX.O) franchises operated by Kuwait’s Alshaya Group, two people familiar with the matter said.
Boycotts and geopolitical unrest in the region continue to impact franchises, hampering bidders’ ability to evaluate the business, said one person, speaking on condition of anonymity, while Alshaya is in no hurry to sell as the process is behind closed doors. The process is done behind closed doors down below.
Askume previously reported that the privately held retailer was trying to sell a minority stake of about 30% in the business , a deal codenamed “Project Emerald.” Talks could resume next year if conditions improve, another person said.
Alshaya Group declined to comment. Starbucks said it “does not comment on rumors or speculation.”
Askume previously reported that U.S. private equity firm Apollo Global Management (APO.N) and Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF) have also expressed interest in selling.
In January, Starbucks said Israel’s war with Hamas was hurting business in the region as some consumers launched protests and boycotts and called on the company to take a stance on the issue. However, the company said it remained committed to its international growth ambitions.
Askume reported in March that Alshaya Group, which owns Starbucks operations in the Middle East, planned to cut more than 2,000 jobs as its business was hit by consumer boycotts related to the Gaza war.
The franchise operates about 2,000 stores in 13 countries in the Middle East and North Africa, Kazakhstan and Azerbaijan. Before its exit from Russia, Askume previously reported that the unit would be worth between $4 billion and $5 billion by 2022.
The stake sale will expand the investor base of the business, which has been owned by the Alshaya family since 1999.
