Homegrown fast-food giant Jollibee Foods Corp. is trimming its interest in China with the sale of its 55 percent stake in local restaurant chain Guangxi San Pin Wang Food and Beverage Management Co. Ltd. (San Pin Wang).
The stake will be sold back to Jollibee’s partner in San Pin Wang, Guangxi Zong Kai Food Beverage Investment Co. Ltd. (GZK) for 90 million RMB (P649.87 million).
In a disclosure to the Philippine Stock Exchange on Tuesday, Jollibee said it decided to focus on building its flagship Yonghe King business in China. This is now its largest business in this territory with 315 stores as of end-November.
“JFC’s divestment of its shareholdings in San Pin Wang is part of its intention to concentrate its resources on businesses with greater potential,” the Jollibee disclosure said.
San Pin Wang is a local restaurant chain with stores mostly located in Guangzi province in the southern part of China. Its menu is centered on low-priced beef noodle. As of end-November, it had 71 stores.
The Jollibee group bought 55 percent of San Pin Wang from GZK in 2012, during which the chain had 34 stores and the network was already profitable.