Food manufacturer Universal Robina Corp. (URC) is selling its 21-percent stake in an instant noodle joint venture with Nissin Foods Asia Ltd. (NFA).
URC said Friday its board approved the sale of 39.69 million shares in Nissin Universal Robina Corp. (NURC) to NFA to accelerate development in the instant noodle market.
The transaction will increase NFA’s ownership in the joint venture to 70 percent from 49 percent, while the stake held by Philippine food and beverage giant URC will decline to 30 percent from 51 percent. The companies said the move aims to “refine their partnership” and leverage the global expertise of the Japanese food group.
Under the new arrangement, NFA will take a larger leadership role in product innovation and brand building. URC will remain the local operating partner, managing day-to-day operations through its distribution network and market knowledge.
Established in 1994, NURC manufactures and sells instant noodles in the Philippines using brands developed by Nissin. The final acquisition cost is expected to be finalized before the end of the year.
The companies target Jan. 7, 2027 for the closing of the deal, which remains subject to approval by the Philippine Competition Commission.
Once the transaction is complete, NFA will consolidate NURC in its financial statements and URC will recognize its remaining interest using the equity method.
