Seeking to focus more on its larger businesses in the US, Philippine food service titan Jollibee Foods Corp (JFC) is on a divestment mode anew, selling its stake in restaurant developer Chow Fun Holdings LLC.
Jollibee disclosed on December 15 that through its wholly-owned subsidiary Jollibee Worldwide Pte Ltd (JWPL), the company will divest its shareholdings in Chow Fun, a non wholly-owned subsidiary.
“The divestment is part of the company’s intention to concentrate its resources in building its larger businesses,” Jollibee said in its statement.
Chow Fun is the developer and owner of a restaurant concept known as Jinja Bar and Bistro. It has three restaurants in New Mexico, two in Albuquerque and one in Santa Fe.
Only two days ago, Jollibee divested its stake in another non wholly-owned subsidiary the Guangxi San Pin Wang Food and Beverage Management Co Ltd (SPW), a China-based restaurant chain centered on low priced beef noodle.
Based on an agreement, Chow Fun will redeem and JWPL will deliver to Chow Fun 2,900 Class A Membership Unit priced at $551.72 apiece or a total of $1.6 million. The shares represent Jollibee’s 80.55 per cent stake in Chow Fun.
“The redemption by Chow Fun of the JWPL Units will be conditioned upon Chow Fun being able to arrange third party financing at commercially reasonable terms and conditions in a sufficient amount to pay the Price,” Jollibee added.
Jollibee’s last trading price remained at P210 per share on December 15.