Jollibee Foods hikes stakes in Tim How Wan to 85%

Home-grown food service giant Jollibee Foods Corp. (JFC) said Tuesday it is increasing its interest in the master franchise holder of Michelin-starred restaurant chain Tim Ho Wan.

In a disclosure to the Philippine Stock Exchange, JFC said it will purchase, through its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL),  the 25% participating interest of Aragon Investments SPC in Titan Dining LP —a private fund and the ultimate holding entity of the Tim Ho Wan brand.

The purchase will increase JFC’s participating interest in Titan Dining from 60% to 85%.

The transaction, with a total consideration of SGD36.3 million, will be completed on October 30, 2020.

JFC said it will pay Aragon Investments through JWPL in cash.

To recall, in may 2018, JFC disclosed that it shall invest up to SGD45 million in Titan Dining, representing 45% of the fund, which had a fund size of SGD100 million at that date of disclosure.

The company noted that it would have the opportunity 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 said it would operate as a franchisee of Tim Ho Wan in Shanghai, China.

“When the disclosure was made in May 2018, Tim Ho Wan Pte. Ltd. (THWPL) and its affiliate Dim Sum Pte. Ltd. (DSPL), 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, with further development planned in the Asia Pacific region,” JFC said.

“There were 40 restaurant outlets under THWPL and DSPL, both company-owned and franchised stores,” it said.

On October 2, 2019, JFC disclosed that the fund size of Titan increased from SGD100 million to SGD200 million, and that in connection therewith, JWPL’s capital commitment to Titan Dining increased from SGD45 million to SGD120 million.

This increased JFC’s investment to 60% of the fund.

The company said the increase in fund size and additional capital commitment of JWPL are in furtherance of certain strategic projects currently being undertaken by Titan Dining, consistent with its mandate to invest in the food service sector and grow strong Asia Pacific food service brands.

On September 23, 2020, the Jollibee Group opened the first-ever Tim Ho Wan restaurant in Shanghai, marking the Michelin starred restaurant’s entry into the world’s second largest consumer economy.

The Jollibee Group has entered into a joint venture agreement with the Tim Ho Wan Group to open and operate Tim Ho Wan restaurants in Mainland China in line with the agreement made in May 2018.—AOL, GMA News