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Jollibee Foods Corp. (JFC)
Local fast food giant Jollibee Foods Corp. is increasing its interest in the holding company that controls Michelin-starred restaurant chain Tim Ho Wan to 85 percent from 60 percent as part of diversifying and expanding its global brand.
Jollibee, one of Asia’s most valuable restaurant chains, is set to buy Aragon Investments SPC’s 25 percent stake in Titan Dining LP, a private equity fund and the latest holding entity of the Tim Ho Wan brand, increasing your interest in the Titan fund. at 85 percent.
According to a disclosure to the Philippine Stock Exchange on Tuesday, Jollibee, through its wholly-owned subsidiary Jollibee Worldwide Pte Ltd., will make the additional investment in the amount of S $ 45 million (P1.6 billion), equivalent to 45 percent of the fund.
This is seen as an opportunity for Jollibee to acquire substantial ownership in Tim Ho Wan’s main franchise in the Asia Pacific region, when the term of the fund ends in seven years, through a purchase mechanism that is envisaged in the agreement with Titan.
To prepare for this eventuality, JFC will operate as a Tim Ho Wan franchise in Shanghai, People’s Republic of China.
When the disclosure was first made in May 2018, Tim Ho Wan Pte. Ltd. (THWPL) and its subsidiary Dim Sum Pte. Ltd. (DSPL), which owns and operates Tim Ho Wan stores in Singapore, also had franchises. in Cambodia, Indonesia, Japan, Macao, Taiwan, Thailand, Vietnam, Australia and the Philippines, with further development planned in the Asia Pacific region. . There were 40 restaurant establishments under THWPL and DSPL, both company-owned and franchised stores.
Last year, the size of the Titan fund increased from S $ 100 million to S $ 200 million, thus raising JWPL’s capital commitment to Titan from S $ 45 million to S $ 120 million, bringing JFC’s investment in the fund to 60%. This was in line with certain strategic projects that Titan is currently undertaking, consistent with its mandate to invest in the foodservice sector and develop strong foodservice brands in Asia Pacific.
On September 23, the Jollibee Group opened the first Tim Ho Wan restaurant in China. The first restaurant was located in Shanghai, marking the Michelin-starred restaurant’s entry into the world’s second-largest consumer economy.
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