On January 27, Dazheng Capital announced that a buyer group led by it had completed the acquisition of some shareholders of Luckin Coffee. Other members of the buyer group included IDG Capital and Ares SSG Capital Management.
The board of directors of Luckin Coffee and the company's joint provisional liquidator have carefully assessed that the transaction is in the company's best long-term interests and has approved the transaction.
It is reported that the transaction involved a total of 383,425,748 Class A ordinary shares held by some former management members of Luckin Coffee.
After the former management members defaulted on their debts, the court appointed joint liquidators to dispose of the shares on behalf of the creditors.
After the completion of this transaction, Dazheng Capital became the controlling shareholder of Luckin Coffee, holding more than 50% of the company's voting rights.
Dazheng Capital stated that it will continue to support the invested companies in establishing sustainable business models, strong and transparent governance systems and responsible management structures, and will continue to support the long-term growth and development of Luckin.
According to the information released by the U.S. Securities and Exchange Commission (SEC) on the 27th, on January 21st, Ruixing Coffee received the acquisition request.
The sellers include Primus Investment Fund LP, which is in official liquidation, Haode Investment Inc., which is in liquidation, and Summer Fame Limited, which is in liquidation.
The sellers are subsidiaries of former Luckin Coffee managers Lu Zhengyao, Qian Zhiya and their families.
After a long-term management turmoil, Luckin Coffee’s debt restructuring that lasted more than a year has finally come to an end.
Investors said that the entry of IDG Capital and Ares SSG this time shows that they are optimistic about the development prospects of Ruixing in the Chinese coffee market.
According to public information, IDG, as the world's leading private equity investment institution, not only made precise investments in the early stages of development of Baidu and Tencent, but also deployed many industry brands such as Xiaomi and NIO in recent years, and has become the most important player in China's venture capital circle. One of the weather vanes.
Ares SSG is a subsidiary of Ares Management Corporation, an asset management company under the Abu Dhabi Investment Authority of the United Arab Emirates. Its asset management scale exceeds 282 billion US dollars. It has invested in more than 1,100 world-renowned companies around the world, covering medical services, consumer retail and many other industries.