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Highlands Coffee founder's firm regains control in deal with Jollibee
Philippine food giant Jollibee Foods has agreed to sell its controlling stake in Vietnamese coffee chain Highlands Coffee back to a company controlled by its founder, David Thai. The deal values the coffee chain at around $800 million, with Jollibee becoming a minority shareholder.
Philippine-owned Jollibee Foods Corporation announced Wednesday that its subsidiary JSF Investments had signed an agreement to sell its stake in SF Vung Tau Jsc, the operator of the coffee chain in Vietnam, to Viet Thai International Jsc, a company controlled by Thai. Jollibee stated that the transaction is part of its portfolio management strategy, which involves building businesses, expanding their scale, and optimizing ownership stakes once they are mature enough to attract outside capital. The company expects to use the proceeds to reduce debt, reinvest in growth businesses, or return capital to shareholders. Following the transaction, Jollibee will retain a 49% stake in Highlands Coffee, while Thai's company will increase its holding from 40% to 51%, becoming the controlling shareholder. The deal values Highlands Coffee at approximately $800 million, significantly higher than when Jollibee initially acquired its stake. Jollibee had paid $25 million in 2012 for a 49% stake in the coffeehouse chain's Vietnam operations. It also holds a 60% stake in Highlands Coffee's Hong Kong operations. David Thai, CEO and founder of Highlands Coffee, previously indicated that he remained responsible for operations and personnel management, with Jollibee acting as an investor and strategic advisor without involvement in day-to-day business. With Jollibee's capital, Highlands Coffee experienced rapid expansion, becoming Vietnam's largest cafe chain. As of June, it operated 1,062 outlets in Vietnam and overseas, including both company-operated and franchised locations. The chain posted second-quarter EBITDA exceeding 1 billion pesos, a year-on-year increase of over 70% and its highest ever. Highlands Coffee is a significant contributor to Jollibee's profits, ranking second only to Coffee Bean & Tea Leaf and accounting for over 8.6% of the group's total earnings. Highlands Coffee is also considering an initial public offering (IPO), expected in the first quarter of 2027, as it pursues further expansion. Source: VnExpress International
Original source
VnExpress International