Homegrown fast-food giant Jollibee Foods Corp. is raising its interest in the holding firm that controls Michelin star restaurant chain Tim Ho Wan to 85 percent from 60 percent as part of its global brand diversification and expansion.
Jollibee, one of the most valuable restaurant chains in Asia, is set to buy the 25 percent interest of Aragon Investments SPC in Titan Dining LP, a private equity fund and the ultimate holding entity of the Tim Ho Wan brand, hiking its interest in Titan’s fund to 85 percent.
Based on a disclosure to the Philippine Stock Exchange on Tuesday, Jollibee through its wholly-owned subsidiary Jollibee Worldwide Pte Ltd. will make the additional investment amounting to 45 million Singaporean dollars (P1.6 billion), equivalent to 45 percent of the fund.
This is seen as an opportunity for Jollibee to acquire a substantial ownership in Tim Ho Wan’s master franchise in the Asia Pacific region, when the term of the fund ends in seven years, through a purchase mechanism that is provided for in the agreement with Titan.
To prepare for this eventuality, JFC will operate as a franchisee of Tim Ho Wan in Shanghai, People’s Republic of China.
Read more: https://business.inquirer.net/310008/jollibee-boosts-stake-in-tim-ho-wan#ixzz6bYliH3Qp
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