Highlands Coffee Founder Buys Back Stake from Jollibee, Regains Control

David Thai, the founder of Vietnam's prominent coffee chain Highlands Coffee, has acquired an 11% stake from the Philippines-based Jollibee Foods Corporation (JFC) for approximately VND 2,300 billion (USD 88 million). This transaction raises Thai's ownership to 51%, restoring his controlling interest in the company. JFC announced that its subsidiary, JSF Investments, has signed an agreement to sell its 11% equity in SF Vung Tau Joint Stock Company (SFVT) – the entity operating Highlands Coffee's business in Vietnam – to Viet Thai International Joint Stock Company (VTI). VTI was founded by David Thai, the original founder and current CEO of Highlands Coffee. The transaction value is VND 2,300 billion (around USD 88 million), excluding potential adjustments. JFC stated that the sale aligns with its group's strategic portfolio management, which includes building businesses, scaling operations, and optimizing ownership stakes when companies mature enough to attract external capital. The USD 88 million proceeds are expected to be used by JFC for debt reduction, reinvestment in growth areas, or shareholder returns. Under the agreement, JFC will transfer 1,460,938 shares at a price of VND 1.6 million per share. JFC indicated that the transaction price was determined using a multiple-based valuation method, combining standard valuation approaches with normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) and the business's growth prospects. The price may be subject to adjustments based on share value during the payment period, with an agreed-upon cap. The deal remains subject to customary closing conditions, including regulatory and shareholder approvals. Following the transaction, JFC will retain a 49% stake in Highlands Coffee but will lose its controlling position. Meanwhile, David Thai's company will increase its holding from 40% to 51%, making him the majority shareholder. This deal values Highlands Coffee's equity at approximately USD 800 million, which JFC noted is significantly higher than the investment's carrying value on its books. Jollibee first invested in Highlands Coffee in 2012, acquiring 49% of VTI's Vietnam operations and 60% of its Hong Kong operations for USD 25 million. However, in an interview with VnExpress in April 2025, David Thai emphasized that he has always been responsible for operational and personnel management, with Jollibee acting solely as an investor and strategic advisor. With Jollibee's backing, Highlands Coffee experienced significant expansion, becoming Vietnam's largest coffee chain. As of the end of June 2024, the brand operates 1,062 stores both domestically and internationally, encompassing company-owned and franchised outlets. In the second quarter of 2024, Highlands Coffee's EBITDA exceeded VND 440 billion (over 1 billion pesos), a more than 70% increase year-on-year and its highest historical figure. The brand plays an increasingly vital role for Jollibee, with its profits ranking second only to Coffee Bean & Tea Leaf and contributing over 8.6% to the group's total EBITDA. Alongside network expansion, Highlands Coffee is exploring plans for an Initial Public Offering (IPO), tentatively scheduled for the first quarter of 2027. The IPO aims to secure resources for its next growth phase and elevate the brand's stature.