Jollibee boosts investment in Tim Ho Wan

MANILA, Philippines — Jollibee Foods Corp., the Filipino-owned food conglomerate, will increase its investment in popular Chinese dim sum restaurant chain Tim Ho Wan.

In a disclosure yesterday, JFC said the fund size of Titan Dining LP of which Jollibee Worldwide Pte Ltd. (JWPL) is an investor, will double to Singapore $200 million from S$100 million previously.

In connection with this, JWPL will increase its capital commitment to Titan to S$120 million from S$45 million.

“As a result, JFC’s investment will constitute 60 percent of the fund. The increase in fund size and additional capital commitment of JWPL are in furtherance of certain strategic projects currently being undertaken by Titan, consistent with its mandate to invest in the food service sector and grow strong Asia Pacific food service brands,” JFC said.

Titan is a private equity fund which is acquiring 100 percent of the Asia Pacific master franchise holder of the Tim Ho Wan brand, Tim Ho Wan Pte Ltd. (THWPL) and its affiliate Dim Sum Pte Ltd. (DSPL).

The investment in Tim Ho Wan gives the conglomerate the opportunity to have a significant interest in the Tim Ho Wan franchise in the long term and will bring very healthy financial returns to JFC.

THWPL holds the exclusive long-term master franchise to operate “Tim Ho Wan” food and beverage business within the Asia-Pacific region excluding Hong Kong.

 It has franchisees in Cambodia, Indonesia, Japan, Macau, Taiwan, Thailand, Vietnam, Australia and the Philippines with further development planed in the Asia-Pacific region.

Thera are 40 restaurant outlets under THWPL and its affiliate DSPL.

Titan may eventually add other brands in the food service sector to its portfolio, with the objective to grow strong Asia Pacific food service brands across multiple geographies and markets.

The term of the fund ends in seven years through a purchase mechanism that is provided for in the agreement with Titan.

To prepare for this eventuality, JFC will operate as a franchisee of Tim Ho Wan in Shanghai, People’s Republic of China (PRC).

Tim Ho Wan has been dubbed as the world’s most affordable Michelin-star restaurant.