Beijing-based private equity firm leads a consortium of investors to take controlling stake in Luckin Coffee
Luckin reports that it operates 5,671 outlets in China | Photo: via Shutterstock
Centurium Capital now owns more than 50% of Luckin Coffee after leading a consortium of investors, including DG Capital and Ares SSG Capital Management, to purchase shares from former Luckin Chairman Charles Lu and former CEO Jenny Qian.
“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,” said Centurium Capital in a statement.
Luckin Coffee has been attempting to normalise its business since a $300m accounting scandal
in 2020. According to an unconfirmed report in The Financial Times
, the coffee chain is planning to relist its shares in the US, two years after being delisted from the Nasdaq.
Reporting its third quarter results
in December 2021, Luckin said it now operates a total of 5,671 locations across China.