Tim Hortons China Edges Closer to US Listing

Canadian coffee chain Tim Hortons has recently made further progress in plans to list its Chinese business division in the US. Silver Crest, a special purpose acquisition company (SPAC), will hold a general meeting regarding the matter on August 18. After gaining approval in the general meeting, Silver Crest and Tim Hortons China plan to merge and list shares.

If the merger with Tim Hortons fails, Silver Crest will continue to look for suitable targets, and the deadline is January 19, 2023. If it fails to merge with Tim Hortons or other businesses, it may face dissolution and liquidation.

In May 2020, Tim Hortons received hundreds of millions of yuan of strategic financing from Tencent. Nine months later, it announced that it had obtained second-round financing, led by Sequoia China $Sequoia Capital Holdings (LIST2559.US)$ , with additional investment from Tencent and followed by Zhongding Capital $Anhui Zhongding Sealing Parts (000887.SZ)$ .

In additional to conventional coffee products, Tim Hortons has also made localization attempts including milk coffee, fruit flavored coffee, with prices ranging from 15 yuan ($2.23) to 30 yuan ($4.45), situated somewhere between Starbucks $Starbucks (SBUX.US)$ and specialty barista coffee. Apart from drinks, Tim Hortons China’s products also include warm food and bagels.