Despite uncertainties in the food industry due to the coronavirus pandemic, Jollibee Foods Corporation is increasing its stake in the ultimate holding entity of popular restaurant chain Tim Ho Wan.
Through its subsidiary Jollibee Worldwide, it increased its stake in the Michelin-starred restaurant to 85% from 60% by purchasing the 25% interest of Aragon Investments in Titan Dining, the private equity fund and ultimate holding entity of Tim Ho Wan.
The transaction worth SGD36.3 million to be paid in cash is expected to be completed on October 30.
In May 2018, Jollibee invested SGD45 million in Titan Dining, representing a 45% stake. The deal gave Jollibee an opportunity to acquire a “substantial ownership” in the dim sum restaurant chain’s master franchisee in the Asia Pacific in 7 years.
When the deal was made, Tim Ho Wan and its affiliate Dim Sum Pte Ltd, which owns and operates Tim Ho Wan stores in Singapore, also had franchisees in Cambodia, Indonesia, Japan, Macau, Taiwan, Thailand, Vietnam, Australia, and the Philippines.
In October 2019, Jollibee increased its investment to SGD120 million, representing a 60% stake.
Jollibee then opened the first Tim Ho Wan restaurant in China in September 2020.
Jollibee currently has 3,247 restaurants in the Philippines and 2,566 stores overseas.