MANILA, Philippines – Jollibee Foods Corporation (PSE:JFC) discloses that the divestment of shares acquired by its wholly-owned subsidiary, Jollibee Worldwide Pte. Ltd. (JWPL), in Chow Fun Holdings LLC was completed.
In a disclosure to the Philippine Stock Exchange (PSE) filed on behalf by Valerie Amante, JFC Vice President, stated that Chow Fun has paid JFC wholly-owned arm $1.6 million to redeem its 2,900 Class A Membership units. This clearance of assets eliminates JWPL’s 80.55 percent stake in Chow Fun.
The divestiture is explained as part of JFC’s objective to focus on developing larger businesses. The company also previously disclosed that it will concentrate on supporting Yonghe King to strengthen food safety, enhance food quality, and expedite product innovations.
At present, the Philippines’ leading fast food chain also has grown in the United States with 33 stores of Red Ribbon, 16 stores of Chowking, and 34 stores and Jollibee. Furthermore, JFC also has a 40 percent stake in Smashburger, which has 378 stores mostly found in America.
Chow Fun Holdings LLC is the owner and developer of Jinja Bar and Bistro restaurant. The company has three restaurants found in New Mexico – one in Santa Fe and two in Albuquerque. On July 25, 2008, JFC purchased 12 percent equity share in Chow Fun. Later on, the shares of Jollibee increased to 80.55 percent after further acquirement on March 31, 2011.
It was also reported that JWPL is giving up its shareholdings in Guangxi San Pin Wang Food and Beverage Management Company Limited. The Jollibee subsidiary’s partner in San Pin Wang, Guangxi Zong Kai Food Beverage Investment Company Limited, is anticipated to purchase its 55 percent share. The total acquirement is worth RMB90 million.
Last month, JFC acquires 30 percent share of Happy Bee Foods Processing through its wholly-owned arm and equity swap. Consequently, the country’s fast food leader now owns 100 percent of the food processing plant.
Early this month, the company also opened its fourth branch in Riyadh at The Square Complex. Presently, there are 12 Jollibee branches in Saudi Arabia. In 2008, the first branch was opened at the Jeddah International Market in Sarawat. Since then, the fast food chain spread throughout the nation with additional branches in Jeddah, Al Khobar, Khalediyah, Al Batha, and Sulaymania among others. Next year, Nesma United Ltd., Jollibee operator in Saudi Arabia, is set to open Chowking branches in the said country.
In December as well, Jollibee in Chicago opened its doors. It is located in the same building where Seafood City could be found in Skokie.
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