<article><a style="color: #000080" href="http://jollibee.com.ph">Jollibee Foods Corp </a> , the largest Asian food service company based in the Philippines, is looking at fully acquiring China&#8217;s Happy Bee Foods Processing Pte Ltd by buying out 30 per cent additional stake for $10.4 million.</article>

<a style="color: #000080" href="http://jollibee.com.ph">Jollibee Foods Corp </a> , the largest Asian food service company based in the Philippines, is looking at fully acquiring China&#8217;s Happy Bee Foods Processing Pte Ltd by buying out 30 per cent additional stake for $10.4 million.
Jollibee&#8217;s wholly owned subsidiary Jollibee Worldwide Pte Ltd (JWPL) currently owns 70 per cent of Happy Bee.
Late last year, Jollibee acquired a 40 per cent stake in US-based restaurant brand <a style="color: #000080" href="http://smashburger.com/">Smashburger Master LLC</a> for $99 million. And, the Asian firm, which is targeting to be among the world’s top 10 fast food brands, has earlier indicated that it would pursue an aggressive drive to buy more overseas companies with ticket sizes up to $100 million.
Jollibee&#8217;s move to fully own Happy Bee is in line with its overseas growth ambitions.
Jollibee vice president Valerie Amante earlier informed the stock exchange that JWPL entered into an agreement with Hua Xia Harvest Holdings Pte Ltd (Hua Xia) to acquire the latter&#8217;s 30 per cent equity shareholding in food manufacturer Happy Bee, which is their joint venture entity.
&#8220;Hua Xia shall sell and convey to JWPL its 30 per cent equity interests in Happy Bee while Happy Bee (Anhui) shall sell and convey to Hua Xia’s nominee entity the assets and contracts related to the third party supply business,&#8221; Amante said, in a statement. &#8220;With this acquisition, JWPL shall own 100 per cent of Happy Bee.&#8221;
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Hua Xia will be selling its 3,518,018 shares in Happy Bee priced at $2.96 per share.
Jollibee will acquire the remaining 30 per cent of Happy Bee for about $10.4 million in the form of assets related to the production of food products intended for institutions outside of Jollibee brands in China.
The transfer of shares and assets are expected to be completed within 2016.
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Amante noted Jollibee will not have a net cash outlay for the acquisition of the 30 per cent share.
&#8220;The objectives of the acquisition of the 30 per cent ownership of Happy Bee, essentially an equity share and asset swap, are for [Jollibee] to concentrate on supporting the growth of its Yonghe King business and on further improving its food quality and increasing assurance on food safety,&#8221; Amante added.
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Happy Bee owns 100 per cent of the equity interests in Happy Bee Foods Processing (Anhui) Co Ltd (Happy Bee Anhui), a wholly foreign-owned enterprise incorporated in the People’s Republic of China.
Happy Bee Anhui operates a manufacturing facility in Anhui, China that currently services the requirements of Jollibee&#8217;s Yonghe King business and produces and sells food products for business institutions other than Jollibee&#8217;s brands.
Jollibee&#8217;s last trading price decreased 0.27 per cent or P0.60 to close at P219.40.
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Philippines: Jollibee buys out partner stake in China-based food JV Happy Bee for $10m

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Philippines: Jollibee buys out partner stake in China-based food JV Happy Bee for $10m

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