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THE INVESTOR] Korea’s IMM Private Equity, the largest shareholder of local coffee franchise Hollys Food and Beverage, operator of the namesake specialty coffee chain, has decided to sell its entire controlling stake.
According to industry sources on July 15, investors are showing keen interest in acquiring the popular coffee chain with more than 500 stores nationwide.
Daesang Group, Carlyle Investment Management and several Chinese financial investors are cited as potential bidders.
Hollys Coffee CEO Shin Sang-chul
Industry watchers estimate the bidding price at about 200 billion Won (US$180 million) to 300 billion won.
“The information memorandum will be sent from next week for the preliminary bidding,” an identified source was quoted as saying by a local news outlet.
IMM is expected to make a short list of about five bidders for the final bidding tentatively scheduled to be held in later September with aims to sign a stock purchase agreement by end of October.
The equity firm purchased Hollys for 45 billion won in 2013 and invested additional 37 billion won in the following years to acquire 91.82 percent stake.
Since the takeover, the chain has also seen its sales surge 58.3 percent from 68.6 billion.
By Lee Ji-yoon (
jylee@heraldcorp.com)