MANILA, Philippines - Fastfood giant Jollibee Foods Corp. (JFC) has completed the acquisition of a majority 55-percent stake in Guangxi San Pin Wang, a noodle fastfood chain in South China.
In a statement, JFC said the acquisition will be made by subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) and is in pursuant to a framework agreement signed in April 2010.
The remaining 45 percent of San Ping Wang is held by Guangxi Zong Kai Food Beverage Investment Co. Ltd. (GZK).
JWPL is investing 30 million renminbi (approximately P203 million) for its stake in San Pin Wang. As joint venture partners, JWPL and GZK will put in additional 20 million renminbi (around P135 million) in San Pin Wang.
JFC and its partner plans to expand the fastfood chain’s operations in other cities in China.
San Pin Wang has 34 stores serving high-quality but low-priced noodles to consumers mostly in Nanning City, Guangxi province. Total sales reached 110 million renminbi in 2011.
The Jollibee Group already owns and operates two businesses in China – Yonghe King (which was acquired in 2004) and Hong Zhuang Yuan (bought in 2008).
As of Jan. 31 this year, Yonghe King and Hong Zhuang Yuan had a combined store network of 319, which accounted for 11 percent of the Jollibee Group’s worldwide sales.
JFC also has a 70 percent interest in Jollibee Foods Processing Ltd., a commissary in Shucheng, Anhui province.
In the Philippines, JFC operates Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King for a combined network of 1,997 branches. Overseas, the group had a total of 469 stores.