The Private Equity Firm Behind Luckin Coffee Tightens Its Hold Over The Chinese Chain – CoffeeTalk

Centurium Capital has enhanced its control over Luckin Coffee Inc., China’s largest coffee chain, by consolidating its holdings. The investment firm acquired 136.2 million Class B shares from Lucky Cup Holdings Ltd., linked to one of Centurium’s funds, which will allow for a streamlined ownership structure while maintaining the same overall stake in Luckin. Post-transaction, Centurium and its founder, David Hui Li, will own 23.28% of Luckin’s equity. The acquisition is backed by a loan from China Citic Bank’s Shanghai branch. Luckin, founded in 2017, has rapidly grown to over 29,000 stores, offering a variety of affordable coffee options and customized drinks, including unique offerings like coconut and cheese lattes. The company is exploring further acquisitions, potentially including Nestle SA’s Blue Bottle Coffee, to enhance its brand presence and penetrate the premium coffee market. Over the last year, Luckin’s American depositary receipts have surged by 24%, contributing to a current market valuation of $10.4 billion.

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