Jollibee Foods Corp., the largest Asian food service company, said Tuesday it completed its divestment from China-based restaurant chain San Pin Wang, marking its second sale in a month.
Jollibee said in a disclosure to the stock exchange wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. completed the divestment of its shareholdings in Guangxi San Pin Wang Food and Beverage Management Company Limited (San Pin Wang).
“With the completion of the divestment, Guangxi Zong Kai Food Beverage Investment Company Limited [GZK] is now the registered owner of 100 percent of San Pin Wang,” Jollibee said.
The fast-food giant earlier said the divestment was in line with the decision to focus on building its Yonghe King business, its largest business in China, with 315 stores as of end November 2016.
San Pin Wang is a Chinese restaurant chain with stores located mostly in Nanning in Guangxi Province in the southern part of China.
Its menu is centered on low-priced beef noodles. At the time of acquisition, it had 34 stores and the business was already profitable. San Pin Wang grew to 71 stores as of Nov. 30, 2016 and plans to continue expanding in 2017 and the years ahead.
Jollibee said to support the growth of Yonghe King, it acquired the 30-percent share of its former partner in Happy Bee Foods Processing through an asset for equity swap to own 100 percent of the food processing plant and divesting a business line producing and selling food products for third-party institutions in China.
“This move is intended to focus on supporting Yonghe King by further improving food quality, strengthening food safety and accelerating product innovations,” Jollibee said.
Jollibee also completed thedivestment of its stake in Chow Fun Holdings LLC, the owner of a restaurant concept known as Jinja Bar and Bistro in the United States for $1.6 million.
