Jollibee Foods Corp., one of the biggest quick service food companies in the world, has completed its divestment of shareholdings in the Chinese restaurant chain San Pin Wang as a part of the strategy to reorganize its international ventures and focus on building its larger businesses.
In a disclosure to the Philippine Stock Exchange on Tuesday, JFC said it completed via offshore investment unit Jollibee Worldwide Pte. Ltd. (JWPL) the divestment of its 55-percent shareholding in Guangxi San Pin Wang Food and Beverage Management Company Limited.
The 55-percent stake was sold back to Guangxi Zong Kai Food Beverage Investment Company Limited (GZK), which now owns 100 percent of San Pin Wang.
San Pin Wang is a Chinese restaurant chain with stores mostly in Nanning in Guangxi Province in the southern part of the People’s Republic of China. Its menu consists largely of low priced beef noodles.
When JFC acquired and equity stake in San Pin Wang from GZK in March 2012, the Chinese food chain had 34 stores and was already profitable. San Pin Wang further grew its outlets to 71 stores as of end-November 2016. It plans to continue expanding in 2017 and in the years ahead.
JFC said the divestment is part of its intention to “concentrate its resources on businesses with greater potential.” This will let the group focus on Yonghe King venture, its largest business in China with 315 stores as of end-November last year.
On November 23, JFC through JWPL, acquired 30 percent of its former partner in Happy Bee Foods Processing in an asset-for-equity swap to own 100 percent of the food processing plant, which will stop producing for third party clients and instead focus on making food products solely for the group’s needs.
The move was intended to fully support Yonghe King by further improving food quality, strengthening food safety and accelerating product innovations.
JFC has one of the biggest food service network in the world, with 3,236 stores to date —2,565 in the Philippines and 671 stores overseas.
The group’s brand network is composed of Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King in the Philippines and in other parts of the world, as well as Yonghe King, Hong Zhuang Yuan, and Dunkin Donuts in China, and Jinja Bar in the US.