FAST-FOOD giant Jollibee Foods Corp. (JFC) is set to acquire full ownership and control of Tim Ho Wan, a Hong Kong-based dim sum restaurant, for S$20.2 million (P892.29 million).
The ownership and management of Tim Ho Wan will be transferred to JFC subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) from Titan Dining LP (Titan Fund), the fast-food operator said in a statement to the stock exchange on Tuesday.
“This will be effected through the transfer of ownership of 100% of Tim Ho Wan Holdings Pte. Ltd. (TPL), the holding company of the Tim Ho Wan business, from a subsidiary of Titan Fund to JWPL,” JFC said.
“JWPL has held a 92% participating interest in Titan Fund since January 2024. Accordingly, its cash payment for the transaction shall only be the amount of SGD 20.2 million, corresponding to the 8% participating interest held by the other investors in Titan Fund,” it added.
Tim Ho Wan, which has around 80 stores across 11 countries, will be the Jollibee group’s flagship brand for the Chinese cuisine segment, JFC said.
The buyout is still subject to closing conditions.
Once completed, TPL will be consolidated into JFC’s portfolio and financial reports.
Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said the transaction supports JFC’s global expansion plans.
“The deal comes as no surprise. We all know that JFC is determined to compete globally, and this transaction fits that strategic direction. By taking full control and ownership of Tim Ho Wan, JFC can better leverage the brand for growth and improve operational efficiencies,” he said in a Viber message.
AP Securities, Inc. Research Analyst Jose Antonio B. Cipres said the deal is part of JFC’s plan to optimize costs.
“For JFC, this will be more of an optimization with regards to costs since the effect would be the consolidation of Tim Ho Wan’s financials into JFC. Note that JFC will effectively be buying out just the 8%, which roughly translates to P900 million, since they already account for the remaining 92%,” he said in a Viber message.
“We also see it as something that would further JFC’s commitment towards global expansion,” he added.
In January, JFC increased its capital commitment to Titan Fund to SGD 414 million to fund Tim Ho Wan’s expansion.
Founded in 2009, Tim Ho Wan is known for dishes such as barbecue pork buns, steamed rice roll stuffed with barbecue pork, pan-fried turnip cake, and steamed egg cake.
JFC shares improved by 4.09% or P10.8 to P275 apiece on Tuesday. — Revin Mikhael D. Ochave