Jollibee Foods quits China restaurant stake
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“The divestment is part of the company’s intention to concentrate its resources on businesses with greater potential,” Jollibee said in its statement, essentially admitting the business was not performing to expectation.
The company will now focus on “larger businesses in China”.
SPW has grown from 34 stores to 71 under Jollibee ownership, mostly located in Nanning in Guangxi province in China’s south. The Philippine company expects to raise US$13 million from the sale, with installments staggered over two years.
Questions & Answers
Q.Why is Jollibee selling its stake in SPW?
Why is Jollibee selling its stake in SPW?
Jollibee stated the divestment allows them to concentrate resources on businesses with greater potential. They also admitted the SPW business was not performing as expected and will now focus on larger operations in China.
Q.How much money does Jollibee expect to gain from this sale?
How much money does Jollibee expect to gain from this sale?
The Philippine company anticipates raising US$13 million from the sale of its SPW stake. This amount will be paid in installments over a two-year period, according to their statement.
Q.How many SPW stores were there when Jollibee decided to sell?
How many SPW stores were there when Jollibee decided to sell?
Under Jollibee's ownership, the SPW chain expanded from 34 stores to 71. These stores are primarily located in Nanning, within China’s southern Guangxi province, before the divestment.
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