After filing for bankruptcy in early 2021, Chinese investment giant Centurium Capital has led a consortium to acquire Luckin Coffee.
Following admissions of hundreds of millions of dollars in sales fraud last year, former Luckin Coffee employees and shareholders were ordered to liquidate their holdings in the company by the Grand Court of the Cayman Islands and the Eastern Caribbean Supreme Court in the High Court of Justice of the British Virgin Islands.
After months of proceedings, the courts approved the secondary sale of shares on 17 January.
Less than two weeks later, Centurium Capital announced the purchase of 383,425,748 Class A ordinary shares, making it the controlling shareholder of Luckin Coffee, holding more than 50 per cent of the voting interest of the Company.
“We will continue to support Luckin’s long-term growth and development,” said a Centurium spokesperson.
The company has promised sustainable business models, robust and transparent corporate governance and responsible management systems.
Luckin Coffee’s board of directors and joint provisional liquidators have agreed the sale is in the best long-term interests of the company.
The consortium, which includes IDG Capital and Ares SSG Capital Management, represents a possible future for the brand that was once one of China’s tech success stories.
For more information, visit the Centurium Capital website.
