Wednesday, August 27, 2008 Jollibee to buy China’s largest food chain
LEADING fast food chain operator Jollibee Foods Corporation (JFC) is completing the acquisition of the largest food restaurant in China.
Agatha Olga de Jesus, corporate counsel and corporate information officer of JFC, said in a disclosure to the Philippine Stock Exchange that its subsidiary Jollibee Worldwide Pte. Ltd. will acquire hundred percent Hongzhuangyuan for US$55.5 million or P2.5 billion.
The food chain has estimated sales for 2008 of US$28.9 million or equivalent to P1.3 billion.
Under the agreement, no payment shall be made until the completion of the purchase which is subject to the approval of the Chinese government.
Hongzhuangyuan operates 37 restaurants majority located in Beijing of which 31 are company-owned while the remaining six are franchised located in key cities in China.
De Jesus said it was in September last year when they started the negotiation with Hongzhuangyuan for its acquisition.
JFC expect to take place the purchase and transfer of ownership of Hongzhuangyuan in October since both parties are conducting their due diligence.
As of June 30, 2008, the Jollibee group has a total of 1,480 stores in the country.
Jollibee alone has a total of 632 stores. Its sister companies, namely: Chowking has 381 stores; Greenwich has 235; Red Ribbon 201; Delifrance 28; and Manong Pepe’s has three stores.
Overseas, the Jollibee group has a total of 209 stores where majority or 115 are located in Yonghe King in China, Jollibee US with 17, Red Ribbon US with 23, Chowking US with 13, Chowking Dubai with 10, Chowking in Indonesia, as well as other outlets of Jollibee in other parts of the globe. (MSN/Sunnex)
