MANILA, Philippines – Jollibee Foods Corporation on Thursday, December 15, said it will fully divest from Chow Fun Holdings LLC, the developer and owner of a restaurant concept known as Jinja Bar and Bistro in the United States, for $1.6 million.
In a disclosure to the Philippine Stock Exchange, Jollibee said it plans to focus instead on building its larger businesses.
Jollibee, through its wholly owned subsidiary Jollibee Worldwide Private Limited, has an 80.55% equity share in Chow Fun, which currently operates 3 restaurants in New Mexico, two in Albuquerque, and one in Santa Fe.
It was in 2008 when Jollibee initially acquired a 12% equity share in Chow Fun. It then increased its shares to 80.55% on March 31, 2011.
The fastfood giant currently operates 83 stores in the US, of which 34 are Jollibee stores, 33 are Red Ribbon stores, and 16 are Chowking stores.
It also has a 40% stake in Smashburger, which has 378 stores, mostly located in the US.
This is the second divestment made by Jollibee this week.
Last Tuesday, December 13, Jollibee said it sold its entire stake in restaurant chain San Pin Wang in China for RMB 90 million as part of its strategy to concentrate its resources on businesses with greater potential.
The Philippines, China, and the US are the 3 major markets that Jollibee wants to focus on in terms of expansion and acquisitions.
During the 3rd quarter of the year, the Philippine business grew by 14.1% and the US business by 14.6%. The China business, however, contracted by 2.4%.
As of end-October, the Jollibee group operates 2,565 restaurant outlets in the Philippines and 671 stores overseas.
It also has a 50% interest in joint ventures for the following stores: Highlands Coffee (Vietnam, Philippines) 159, Pho 24 (Vietnam, Indonesia, Cambodia, Korea, and Australia) 33, others 8; and 48% interest in a joint venture for 12 Hotpot (China).
These joint ventures have a total of 594 stores worldwide, which are not included in the Jollibee group’s consolidated store count.
The share price of Jollibee on Thursday closed lower by 1.9% to P206 from the previous day’s close of P214 per share. – Rappler.com