Asia’s largest fast food player -Philippines-based Jollibee Foods, is seeking to take full control of China’s Happy Bee Foods Processing.
The Manila company will buy an extra 30 per cent stake for US$10.4 million.
Jollibee, which now has a 70 per cent stake in Happy Bee, acquired a 40 per cent share of US-based restaurant brand Smashburger for $99 million last October. It is continuing to scour the region for acquisition targets, with as it pursues its goal of becoming one of the world’s top 10 fast-food brands.
Jollibee VP Valerie Amante has told the stock exchange its wholly-owned subsidiary Jollibee Worldwide (JWPL) entered into an agreement with Hua Xia Harvest Holdings to acquire its 30 per cent equity shareholding in Happy Bee, which is their joint venture entity.
Hua Xia will be selling its 3,518,018 shares in Happy Bee at $2.96 a share. Jollibee will acquire the remaining 30 per cent of Happy Bee for about $10.4 million in the form of assets related to the production of food products intended for institutions outside of Jollibee brands in China.
It is expected the deal, which does not include any cash outlay, will be closed this year.
“The objectives of the acquisition – essentially an equity share and asset swap – are for Jollibee to concentrate on supporting the growth of its Yonghe King business, and on further improving its food quality and increasing assurance on food safety,” says Amante.