Saudi PIF shortlisted as bidder for stake in Starbucks Middle East

Two sources told Reuters that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has been shortlisted to buy a stake in the Middle East, North Africa and central Asia Starbucks franchise held by Kuwaiti Alshaya Group.

Alshaya Group, the region’s leading brand franchise owner, last year hired JPMorgan (JPM.N) to sell a significant minority stake in Starbucks franchise. The sources added that it could sell up to 30%, generating $4 billion-$5 billion, according to CNBC Arabia.

The Starbucks business in the region has several hundred outlets in 14 countries across the Middle East, Russia, and central Asia.

Neither the Saudi PIF, which manages assets worth $600 billion, nor Alshaya Group immediately responded to a request for comment.

The Saudi Wealth Fund is among the bidders that have made it to the next round as the sale process nears its final stages, According to Reuters.

The sources added that Abu Dhabi state fund Mubadala Investment Co and Abu Dhabi state holding fund ADQ are no longer in the race.

It should be noted that the Alshaya Group runs franchises including H&M, Mothercare, Debenhams, American Eagle Outfitters and Victoria’s Secret.