Foods Corp. (JFC), one of the largest quick service food companies in the world, has divested its 55 percent stake in Chinese restaurant chain San Pin Wang to focus on its other Chinese ventures with greater potential.
JFC said on Tuesday its offshore investment unit Jollibee Worldwide Pte. Ltd. (JPWL) sold its 55 percent stake in Guangxi San Pin Wang Food and Beverage Management Co. Ltd. (SPW), operator of the San Pin Wang restaurant chain, back to Guangxi Zong Kai Food Beverage Investment Company Limited (GZK) for 90 million renminbi (RMB) or about P648.9 million.
The company said the divestment is part of its intention to “concentrate its resources on businesses with greater potential.”
JWPL will receive the initial RMB25 million payment within 2016 while RMB55 million will be paid within 2017 and the balance of RMB10 million will be settled within 2018.
The Jollibee Group acquired San Pin Wang from GZK in March 2012, which had 34 stores at that time and was already profitable. The San Pin Wang restaurant chain is located mostly in Nanning in Guangxi Province. The brand has grown to 71 stores as of end-November this year.
In a separate statement, JFC said it decided to focus on building its Yonghe King business, its largest business in China with 315 stores as of end-November.
Also in November, JWPL acquired the 30 percent stake of its partner in Happy Bee Foods Processing through an asset for equity swap to own 100 percent of the food processing plant. The acquisition cancels production for third party institutions so that the facility can focus on making food products solely for the group’s needs.
The move aims to further support Yonghe King by improving food quality, strengthening food safety, and accelerating product innovations.
JFC has one of the biggest food service networks in the world with 3,236 stores to date — 2,565 in the Philippines and 671 stores abroad.
Other overseas businesses of the group through joint ventures include: 60 percent of Vietnam-based Superfoods Group, which is the owner and operator of brands Highlands Coffee and Pho 24, and is a franchisee of Hard Rock Café; 48 percent stake in 12 Hotpot (China) 16; and 40 percent interest in US-based Smashburger.
These joint ventures have a combined 594 stores worldwide which are currently not included in JFC’s consolidated store count.
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; Yonghe King, Hong Zhuang Yuan, and Dunkin Donuts in China; and Jinja Bar in the US.
JFC set a capital expenditure program of P10.4 billion to fund the opening of new stores and renovations of existing stores.
The company is aiming to become one of the Top 5 quick service restaurants (QSR) in the world. At present, JFC is the largest in Asia and 10th largest QSR in the world in terms of market capitalization, according to Bloomberg data earlier cited by the company.