Consortium Led by Centurium Capital Acquires Stake in Luckin Coffee Through Secondary Purchase2022-01-27
January 27, 2022, Beijing – Centurium Capital, a leading private equity investment firm in China, announced today that it has led a consortium to complete a transaction to purchase an aggregate of 383,425,748 Class A ordinary shares of Luckin Coffee (the “Company”) from certain sellers (the “Secondary Sale”). Other consortium members include IDG Capital and Ares SSG Capital Management.
The sellers are affiliates of and were formerly controlled by certain former management members of the Company and their families, and were ordered to be wound up and are currently in liquidation pursuant to an order of the Grand Court of the Cayman Islands and pursuant to orders of the Eastern Caribbean Supreme Court in the High Court of Justice of the British Virgin Islands (the “BVI Court”). The joint liquidators appointed in respect of the sellers have exercised their statutory powers to enter into definitive documents to give effect to the Secondary Sale. On January 17, 2022, the BVI Court sanctioned transactions that form part of the Secondary Sale, as required by the securities purchase agreement that gave effect to the Secondary Sale.
The Board of Directors and joint provisional liquidators of Luckin Coffee have determined the Secondary Sale to be in the long-term best interest of the Company, and accordingly approved the transaction.
Upon the closing of the Secondary Sale and after taking account of its previous investments, Centurium Capital has become the controlling shareholder of Luckin Coffee, holding more than 50% of the voting interest of the Company.
Statement from Centurium Capital:
“We are committed to supporting our portfolio companies to build sustainable business models, robust and transparent corporate governance and responsible management systems, and we will continue to support Luckin’s long-term growth and development.”
Centurium Capital is a leading private equity investment firm in China, with primary focuses on China’s consumer, business services and healthcare sectors.