Food service giant Jollibee Foods Corp (JFC) is divesting its stake in its non wholly-owned subsidiary the Guangxi San Pin Wang Food and Beverage Management Co Ltd (SPW) to focus on larger businesses in China.
“The divestment is part of the company’s intention to concentrate its resources on businesses with greater potential,” Jollibee said in its statement.
Jollibee disclosed on December 13 that through its wholly-owned subsidiary Jollibee Worldwide Pte Ltd (JWPL), it shall divest its 55 per cent in shareholding in SPW pegged at $13 million (RMB90 million).
SPW is a local Chinese restaurant chain with stores located mostly in Nanning in Guangxi Province in the southern part of the People’s Republic of China. Its menu is centered on low priced beef noodle.
Jollibee noted at the time of SPW’s acquisition, it had 34 stores and the business was already profitable. The Chinese restaurant chain grew profitably to 71 stores as of November 30, 2016.
Based on a commercial agreement, RMB25 million will be paid to JWPL before 2016 ends, RMB55 million within 2017, and RMB10 million within 2018.
Jollibee’s last trading price on December 13 decreased 0.09 per cent or P0.200 to close at P211.20 per share.