MANILA, Philippines — Asian food conglomerate Jollibee Foods Corp. (JFC) is boosting its position in the Chinese cuisine segment with the acquisition of a majority stake in a leading wellness soup brand in Taiwan.
JFC, through Milkshop International Co. Ltd. (Milksha), signed an agreement to purchase 980,000 shares at NT$105.92 per share, equivalent to a 70-percent stake in Tien Hsia Sheng Co. Ltd. (Moon Moon Food) for NT$103.8 million.
Payment will be made by Milksha upon completion of relevant conditions precedent to the closing of the transaction.
Once the transaction is completed, JFC said that Moon Moon Food would be consolidated into Milksha’s portfolio and financial reports.
Correspondingly, JFC will take on 51 percent of any acquisition impact to Milksha.
Moon Moon Food founder and CEO Yung-Cheng Lai is set to retain a 30-percent minority interest in the company.
According to JFC, Moon Moon Food is a highly popular restaurant brand in Taiwan that has been recognized by the Michelin Bib Gourmand for seven consecutive years.
Moon Moon Food, regarded as the leading brand in Chinese wellness soups, operates a profitable business with 13 outlets in Taiwan.
It also opened its first international branch in Singapore last year.
Milksha, a majority owned subsidiary of JFC through Jollibee Worldwide Pte. Ltd. (JWPL), meanwhile, is an alternative healthy beverage brand under the tea segment.
JFC said that Milksha provides the company the opportunity to participate in the fast-growing beverage category globally.
“This strategic move reinforces Milksha’s position as a leader in the tea segment in Taiwan by accretively integrating Moon Moon Food’s resources and complementary offerings to enhance ability to meet evolving customer needs, further strengthening scale, valuation and expanding consumer base of Milksha,” JFC said.
JFC, through JWPL, also recently completed its takeover of the management and ownership of Tim Ho Wan for 20.2 million Singapore dollars.
Tim Ho Wan will be the flagship brand for the Jollibee Group’s Chinese cuisine segment.