Hallyu Ventures invests $13.8m in Korean coffee house
Singapore’s Hallyu Ventures will acquire a 38% stake in South Korean coffee shop operator Caffe Bene for a cash consideration of KRW16.6 billion ($13.8 million).
According to a market filing, the sale will include 33.2 million shares at KRW500 ($0.42) apiece for the company, which operates 1,600 locations worldwide. The investment is expected to allow Caffe Bene to grow brand recognition within Korea while advancing global expansion opportunities with overseas partners.
The deal represents renewed investment interest in Korea's competitive coffee house industry, where GP IMM Private Equity paid $87.5 million in 2013 for a 60% stake in the oldest domestic chain, Hollys Coffee. Per capita coffee consumption in the country has been estimated at 2.6 kilograms, ranking it 26th in the world overall.
The Korea Times reported that Hallyu is expected to strengthen its interest in Caffe later this year with an additional investment. The joint venture between Food Empire and Eastern Valley Group was formed to invest in the country's food and beverage companies. Food Empire exports beverages, frozen convenience food and snack food to more than 60 countries.
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