Jollibee increases stake in Tim Ho Wan
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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.
Questions & Answers
Q.What is the new total value of Jollibee's investment in Titan Dining?
What is the new total value of Jollibee's investment in Titan Dining?
Jollibee initially invested SGD45 million in 2018. They increased this to SGD120 million in 2019, and the current transaction for an additional 25% stake is worth SGD36.3 million. This brings the total investment to SGD156.3 million.
Q.What proportion of Tim Ho Wan's holding entity does Jollibee now own?
What proportion of Tim Ho Wan's holding entity does Jollibee now own?
Jollibee's subsidiary, Jollibee Worldwide, is increasing its stake in Titan Dining to 85% from 60%. This makes Jollibee the substantial owner of the private equity fund.
Q.What was the purpose of Jollibee's initial investment in Tim Ho Wan in 2018?
What was the purpose of Jollibee's initial investment in Tim Ho Wan in 2018?
The 2018 deal gave Jollibee the opportunity to acquire substantial ownership in Tim Ho Wan's master franchisee in the Asia Pacific region. This was an option to be exercised within seven years of the initial investment.
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