September 24, 2014 7:20 pm Specifically: the remaining 60.5% of Starbucks Japan. After that, it will own all of the roughly 1,000-plus stores that employ more than 25,000 workers.
Starbucks in Japan has been a joint venture between Starbucks and Sazaby League for nearly 20 years. That’s about to change with a two-step tender offer process.
Step One: Sazaby will tender its shares on Sept. 26th. The purchase price for Sazaby’s 39.5% share is about $505 million US dollars. When that tender offer is settled, probably during the middle of Starbucks first quarter of fiscal 2015, Starbucks will own a controlling 79% interest in Starbucks Japan.
Step Two: Shortly after settlement of the first step, Starbucks will initiate the second step for the remaining 21% ownership interest. The tender offer purchase price for this second step is about $408.5 million US dollars.
The transactions are expected to be fully completed during the first half of calendar 2015.
The unstated Step Three: Celebrate, perhaps, with a round of lattes?
Will Starbucks' free college hurt stock?
A: Starbucks’ 135,000 U.S. employees just got great news: They might get their college paid for. But investors are wondering what this grand plan is going to cost them.
The coffee chain known for going farther for their employees said this week it would pay for online classes at Arizona State. The company hasn’t provided any financial details about the arrangement, but the cost of a four-year degree at Arizona State would cost roughly $60,000 in current dollars.
Not all workers will get this much of a benefit, though. The program is open to employees if they work 20 hours a week if they enroll as juniors or seniors. Others workers can get scholarships.
Analysts are still trying to measure the costs. This program may seem costly, but it “will not impact profitability” at Starbucks, says Nick Setyan, analyst at Wedbush Morgan in an e-mailed response to USA TODAY. “The costs and the benefits will likely be relatively small, in my opinion.”
And John Staszak of Argus Research says the costs, “shouldn’t be too bad,” in an e-mailed response to USA TODAY. He points out the program are online sources and limited only to a set of employees. “It will attract and keep a better caliber of employee,” he says.
