Reference News website reported on May 16th according to a report from Bloomberg News website on May 15th, sources familiar with the matter said that Starbucks is considering its development prospects in China, including selling equity and has contacted private equity firms and technology companies for this purpose.

The sources said that this week, the coffee chain sent a letter through a financial advisor to several potential investors, seeking their opinions on Starbucks' business in China and how to develop this business. Since this was done privately, these individuals requested anonymity. They said that this transaction could be worth billions of dollars.

It was reported that Starbucks previously evaluated its business in this second-largest market. The company warned about competitive pressures in China where Luckin Coffee and Cotti Coffee have emerged as major local participants.

As of the end of March, Starbucks had more than 7,750 stores in China. In the quarter ended on March 31st, Starbucks generated approximately $740 million in net revenue in China. During the same period, Luckin's total net revenue was $1.2 billion.

Reportedly, the potential bidders will submit preliminary feedback in the coming weeks. They said that Starbucks may also decide not to proceed with the deal.

A representative for Starbucks said that apart from what has already been publicly shared, Starbucks has nothing further to comment on. This refers to remarks made by CEO Howard Schultz during an earnings call at the end of April. Schultz said there were signs that Starbucks' business in China was improving after adjusting products and prices. Schultz said at the time, "In the long term, we remain committed to our growth in China. We believe there is significant potential in our business there over the next few years."

It was reported that Starbucks' stock price has fallen 25% from its peak on February 28th.

A Starbucks cafe located in Suzhou (Xinhua News Agency file photo)

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