Restaurant chain operator Jollibee Foods Corp. said Thursday it will fully divest from Chow Fun Holdings LLC, the developer and owner of US-based restaurant chain Jinja Bar and Bistro for $1.6 million.
Jollibee said in a disclosure to the stock exchange the divestment in Chow Fun was a part of a plan to concentrate its resources on building larger businesses.
Jollibee through wholly-owned subsidiary Jollibee Worldwide Pte Ltd. has an 80.55-percent equity in Chow Fun which currently operates three restaurants in New Mexico, two in Albuquerque and one in Santa Fe.
Jollibee initially acquired a 12-percent equity share in Chow Fun in 2008 and increased it to 80.55 percent on March 31, 2011.
The fast-food giant currently operates 83 stores in the United States, including 34 Jollibee stores, 33 Red Ribbon branches and 16 Chowking outlets.
It also has a 40-percent ownership in Smashburger which has a total of 378 stores, mostly located in the United States.
This marked the second divestment made by Jollibee this week. Jollibee said Tuesday it sold its entire stake in restaurant chain San Pin Wang in China for RMB 90 million as part of a strategy to concentrate its resources on businesses with greater potential.
Share price of Jollibee dropped 1.9 percent Thursday to P206.
