Mubadala Takes Minority Stake In Luckin Coffee Arabian Post

2026-09-10 02:16:39

(MENAFN- The Arabian Post) clearfix">Mubadala Investment Company has agreed to acquire a significant minority interest in Luckin Coffee alongside controlling shareholder Centurium Capital in a transaction valued at about $1 billion, extending the Abu Dhabi sovereign investor's exposure to China's consumer sector.

The transaction is structured through Success Cup Limited and is expected to give a Mubadala affiliate the right to nominate a director to Luckin Coffee's board while it maintains an ownership threshold of at least 5 per cent on an as-converted basis, according to a US regulatory filing dated September 9.

The investment agreement was signed on September 5 and centres on the purchase of more than 241 million senior convertible preferred shares from entities linked to Centurium. The deal remains subject to customary closing conditions.

<p>Mubadala is investing together with Centurium Capital, which became Luckin Coffee's controlling shareholder in 2022 after leading a consortium that acquired shares formerly held by entities connected to the coffee chain's founders. Centurium is expected to remain Luckin's largest shareholder after the transaction.</p><p>Luckin Coffee had more than 36,000 stores globally at the end of June and had served close to 500 million cumulative transaction customers, underscoring the scale of the business that Mubadala is entering. The company has expanded quickly across China while also pursuing international growth.</p><p>For the second quarter of 2026, Luckin reported net revenue of about 15.9 billion yuan, up roughly 29 per cent from a year earlier. Operating profit was about 2.1 billion yuan, an increase of around 22 per cent, while its operating margin was 13.4 per cent. The company added more than 2,600 stores in China during the quarter.</p>See also  Kuwait and Pakistan deepen military partnership <p>The investment adds a major consumer-facing company to Mubadala's China portfolio. The sovereign investor has built substantial exposure to the country over the past decade across sectors including technology, retail, healthcare and industrial businesses, while maintaining a broad global investment strategy.</p><p>The transaction highlights the growing role of Gulf sovereign capital in China as institutional investors become more selective about exposure to the economy. Mubadala has continued deploying funds into areas where it sees durable domestic demand, with consumer businesses offering a different risk profile from technology and industrial assets.</p><p>Luckin has invested heavily in its supply chain. A smart roasting centre in Qingdao began operations this year with planned investment of about 3 billion yuan and annual roasting capacity exceeding 55,000 tonnes, strengthening its ability to support an expanding retail network.</p><p>Mubadala has indicated that it sees long-term opportunities in China's consumer market, where coffee consumption has continued to expand and local chains have intensified competition through aggressive store openings, digital ordering and frequent product launches.</p><p>Luckin has built its growth model around app-based ordering, data-driven marketing, rapid product development and a mix of self-operated and partnership stores. Its large network has allowed the company to compete heavily on convenience and pricing while widening its presence beyond major cities.</p><p>The deal also brings Mubadala into closer alignment with Centurium, whose investment in Luckin has been central to the coffee chain's restructuring and recovery. Centurium injected capital into Luckin during its post-2020 overhaul and later increased its ownership to gain control.</p><p>Luckin was delisted from Nasdaq in 2020 after disclosing fabricated sales and subsequently entered restructuring proceedings in the United States. The company completed its offshore debt restructuring in 2022 and continued trading over the counter under the ticker LKNCY.</p>See also  UAE sets December start for commercial music fees <p>The business has since rebuilt its store network and financial position, overtaking major international competitors by sales in China and becoming the country's largest coffee chain by store count. Its expansion has also moved beyond the domestic market, including outlets in Singapore and the United States.</p><p>The regulatory filing shows that Mubadala Investment Company PJSC and MIC Industrial Investments 4 RSC Ltd joined Centurium-linked entities in reporting a combined beneficial ownership position of about 22.08 per cent of Luckin Coffee on an as-converted basis. That calculation includes ordinary shares as well as securities convertible into Class A shares.</p><div class='code-block code-block-1'><h2></h2></div>

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Mubadala Takes Minority Stake In Luckin Coffee Arabian Post

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