Jollibee seals purchase of stake in Chinese chain

 by Jenniffer B. Austria  -Thursday, October 28, 2010    

Fastfood giant Jollibee Foods Corp. has finalized its acquisition of a 55-percent interest in Chinese beef noodle restaurant for RMB 30 million ($4.4 million).

Jollibee said in a disclosure to the stock exchange that wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. signed a share purchase agreement with Guangxu Zong Kai Food Beverage Investment Co. Ltd. to buy 55 percent of San Pin Wang beef noodle resturant.

Guangxi Zong will keep 45 percent of San Pin Wang, its fastfood chain serving low-priced beef noodles.

Jollibee group and Guangxi Zong also agreed to put in additional investments of RMB 20 million on fastfood chain in anticipation of expansion.

The joint venture is expected to be operational within the first quarter of 2011.

San Pin Wang, which earlier projected annual sales of RMB 100 million in 2010, is profitable and has no debt, Jollibee said in an earlier statement. There are currently 34 San Pin Wang stores, located mostly in Nanning City in Guang Xi province in South China. It also operates two commissaries.

The San Pin Wang joint venture will provide Jollibee with a brand based in south China.

Jollibee operates two brands in China—Yonghe King based in Shanghai and Hong Zhuang Yuan in Beijing.

The two foreign businesses had a combined 236 stores at the end of September and accounted for 12 percent of the Jollibee group’s worldwide systemwide sales in the third quarter.

The Jollibee group operates the country’s largest food service network. It had 1,578 stores in the country as of end-September this year. It also had 375 stores abroad.

Jollibee owns Chowking, Greenwich, Red Ribbon and Manong Pepe’s chains and bought 70 percent of the Mang Inasal restaurant.

http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/october/28/business3.isx&d=2010/october/28
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