MANILA, Philippines – Local fastfood giant Jollibee Foods Corp. has sealed a deal to acquire a majority stake, or 55 percent, in San Pin Wang, a beef noodle chain in China, for RMB 30 million or P195 million.
Jollibee said the transaction was pursuant to the agreement entered into by wholly-owned unit Jollibee Worldwide Pte. Ltd. and Guangxi Zong Kai Food and Beverage Investment Co. Ltd. on April 30, 2010.
The remaining 45 percent of San Pin Wang, which operates a chain of 34 low-priced beef noodle restaurants mostly in Nanning City in Guang Xi Province in South China, will still be owned by GZKFB.
The agreement also calls for both Jollibee Worldwide and GZKFB to infuse an additional RMB 20 million or P125 million in San Pin Wang to fund the beef restaurant chain’s expansion.
The joint venture, which will allow the Philippine-based company to penetrate South China, is expected to be operational within the first quarter of 2011, JFC said in a disclosure to the Philippine Stock Exchange (PSE).
JFC currently operates two brands in the People’s Republic of China – Yonghe King in Shanghai which was acquired in 2004 and Hong Zhuang Yuan in Beijing. Hong Zhuang Yuan was bought in 2008.
As of the end of September 2010, the two businesses combined had a total of 236 stores and in the third quarter, accounted for 12 percent of the Jollibee Group’s worldwide system sales, a measure of all sales to consumers, both from company-owned and franchised stores.
JFC currently operates the country’s largest fast food network with a total of 1,578 stores as of Sept. 30 this year – Jollibee 703, Chowking 404, Greenwich 218, Red Ribbon 215, Delifrance 23 and Manong Pepe’s 15.
Overseas, the group had 375 stores abroad as of the same period – Yonghe King 185 stores, Jollibee 64 (mainly in the US 26, Vietnam 20, Brunei 11), Red Ribbon 38 all in the US, Chowking 37 mostly in the US 19 and Dubai 15) and Hong Zhuang Yuan 51 for a total of 1,953 stores worldwide.
Last week, Jollibee acquired 70 percent of Mang Inasal for P3 billion.