Jollibee says to sell stake in China-based noodle restaurant
JOLLIBEE Foods Corp. (JFC) is divesting from Guangxi San Pin Wang Food and Beverage Management Co. Ltd. to focus on larger businesses in China.
In a statement issued on Monday, the fast food giant said its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) will dispose its 55% stake in San Pin Wang in favor of partner Guangxi Zong Kai Food Beverage Investment Co. Ltd. (GZK) for 90 million yuan.
JFC acquired its 55% stake in San Pin Wang, a local Chinese restaurant chain focused on serving low- priced beef noodle, from GZK in March 2012. San Pin Wang has since grown 71 branches from the 34 existing stores at the time of the acquisition.
San Pin Wang remains profitable and, in fact, plans to continue expanding next year and beyond, JFC noted in the statement.
The company, however, resolved to divest from San Pin Wang to concentrate its resources on “businesses with greater potential” in China, particularly Yonghe King whose store network spanned 315 branches as of end-November.
In late November, JWPL bought its partner out of Happy Bee Goods Processing Pte. Ltd., which owns the operator of a facility producing the food requirements of Yonghe King. It acquired the 30% stake of Hua Xia Harvest Holdings Pte. Ltd. through an equity-and-asset swap deal valued at $10.34 million.
The acquisition also allowed JFC to divest from a business line producing and selling food products for thirdparty institutions in China.
JFC operates the largest food service network in the Philippines. At end- October, the company had 2,565 restaurant outlets under the brands Jollibee, Chowking, Greenwich, Red Ribbon, Mang lnasal and Burger King. It also operated 671 more stores abroad under the brads Yonghe King, Hong Zhuang Yuan, San Pin Wang, Dunkin’ Donuts, Jollibee, Red Ribbon, Chowking and Jinja Bar.
In addition, JFC maintains interest in joint ventures operating 594 stores worldwide. It has a 50% interest in Highlands Coffee and Pho 24, among others; 48% in 12 Hotpot and 40% in Smashburger.
In the nine months to September, the company realized a 13.8% increase in net income attributable to its equity holders to P4.39 billion, after growing its system-wide sales 14.1% to P1107.77 billion.
The year-on-year improvement — albeit weaker than those posted in previous years — reflects the continued growth of same-store sales and the further expansion of the store network of JFC within and outside the country.
In mid-November, the company announced plans to further expand its operation in Vietnam through the joint venture of subsidiary JSF Investments Pte. Ltd. and Viet Thai International Joint Stock Co.
The partnership called Superfoods Group intends to launch an initial public offering in Vietnam within or before July 2019 to fuel the expansion of Highlands Coffee and Pho 24 in the Southeast Asian country, other parts of Asia and key cities in the world.
Shares in the company closed P3.60 or 1.70% higher at P215 apiece on the Philippine Stock Exchange on Tuesday. —