Hong Kong’s dining sector is set for a major restructuring, after Wellcome parent DFI Retail Group and Hong Kong Caterers Limited, owned by the Wu family, announced an agreement to realign ownership of Maxim’s Caterers and its Starbucks franchise operations in Asia.
Under the agreement, DFI Retail will sell its indirectly held 50 per cent stake in Maxim’s to the Wu family’s wholly owned company. At the same time, DFI Retail will acquire Maxim’s Starbucks franchise operations across seven Asian markets. The transaction is expected to generate about US$340 million in net proceeds for DFI Retail, which also plans to raise its dividend payout ratio to 80 per cent.
The deal remains subject to closing conditions and is targeted for completion by the end of the first quarter of next year. Once completed, it will bring DFI Retail’s 54-year ownership interest in Maxim’s to an end, with Hong Kong Caterers becoming Maxim’s sole shareholder.
As part of the restructuring, DFI Retail will take full ownership of Coffee Concepts, the business that operates Maxim’s Starbucks franchises. It runs more than 1,100 Starbucks stores across Hong Kong, Macau, Thailand, Vietnam, Singapore, Cambodia and Laos.
Following its acquisition of full ownership of Maxim’s, Hong Kong Caterers will continue to operate more than 1,000 restaurants and bakery outlets across mainland China, Hong Kong, Macau and several Southeast Asian markets. It will also continue expanding the catering business and investing in staff development and customer service.
Both parties stressed that the transaction would not affect the day-to-day operations of Starbucks stores or Maxim’s dining businesses. DFI Retail, Jardine Matheson and Hong Kong Caterers will maintain their strategic cooperation in procurement, supply chains, property, digital services and the yuu rewards programme.
Founded in 1956, Maxim’s became a joint venture between Hong Kong Caterers and Jardine Matheson in 1972. With Jardine Matheson’s interest held through DFI Retail over the ensuing decades, Maxim’s has grown into one of Asia’s leading food and beverage groups.
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