Jollibee takes full control of China manufacturing unit
SCREENGRAB FROM www.yonghe.com.cn
HOMEGROWN Jollibee Foods Corp., now the largest food service enterprise in Asia, is taking full control of a food manufacturing facility in mainland China that services Yonghe King, its flagship business in that market.
In a disclosure to the Philippine Stock Exchange on Wednesday, Jollibee reported that a wholly owned subsidiary had agreed to buy 30 percent of Happy Bee Foods Processing Pte. Ltd. for around $10.4 million, thus raising its interest to 100 percent.
The seller, Hua Xia Harvest Holdings Pte. Ltd., will be paid in the form of assets related to the production of food products intended for institutions outside of Jollibee brands in China. JFC will not have any net cash outlay for the acquisition of the 30 percent share, the disclosure said.
“The objectives of the acquisition of the 30 percent ownership of Happy Bee, essentially an equity share and asset swap, are for JFC to concentrate on supporting the growth of its Yonghe King business and on further improving its food quality and increasing assurance on food safety,” the company said.
The group’s unit Jollibee Worldwide Pte. Ltd. will own 100 percent of Happy Bee, which in turn owns 100 percent of Happy Bee Foods Processing (Anhui) Co. Ltd. which operates a manufacturing facility in Anhui, China that currently services the requirements of the Yonghe King business as well as produces and sells food products for business institutions other than Jollibee’s brands.
The transfer of shares and assets will still be subject to appropriate governmental and regulatory approvals which are expected to be completed within 2016.
Yonghe King, is one of the most well-known non-Western restaurant in mainland, based on earlier brand power surveys. This is Jollibee’s largest business in China, comprising of 321 stores and contributing 10 percent of system-wide sales worldwide.
“Yonghe King plans to accelerate its store network growth in 2016 and in the years ahead,” the company said.
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