Jollibee to acquire 45% of Tim Ho Wan Asia-Pacific franchise

Fast-food giant Jollibee Foods Corp. said Wednesday it is investing 45 million Singaporean dollars or around P1.74 billion in a private equity fund which will acquire the Asia-Pacific master franchise of Tim Ho Wan restaurant chain.

In a regulatory filing submitted by Jollibee Foods vice-president Valerie Amante, the homegrown fast-food chain said the investment shall be course through wholly-owned subsidiary Jollibee Worldwide Pte. Ltd.

Jollibee said in Titan Dining LP has executed a binding agreement acquire 100 percent of Tim Ho Wan Pte. Ltd.—the Asia-Pacific master franchise holder of the “Tim Ho Wan” brand—and its affiliate Dim Sum Pte. Ltd., which owns and operates Tim Ho Wan stores in Singapore.

Tim Ho Wan also has franchisees in Cambodia, Indonesia, Japan, Macau, Taiwan, Thailand, Vietnam, Australia, and the Philippines, with an expansion development in the works in the Asia Pacific region.

Tim Ho Wan and Dim Sum operate 40 restaurants, company-owned and franchised stores.

“Titan has a fund size of 100 million Singaporean dollars, with Jollibee’s planned investment constituting 45 percent of the total committed investments in Titan, and the balance coming from other investors,” according to Jollibee.

“This agreement provides Jollibee the opportunity to acquire a substantial ownership in Tim Ho Wan’s master franchise in the Asia Pacific region when the term of the fund ends in seven years, through a purchase mechanism that is provided for in the agreement with Titan Dining LP,” it said.

Jollibee said it will sit in the investment committee of Titan Dining.
Titan Dining intends to add other brands in the food service sector to its portfolio.

“This investment gives Jollibee the opportunity to have a significant interest in the Tim Ho Wan franchise in the long-term and will bring very healthy financial returns,” Jollibee chairman Tony Tan Caktiong said.

Tim Ho Wan is a Michelin-star dim sum restaurant chain which originated in Hong Kong in 2009.

The investment in Tim Ho Wan will add to Jollibee’s portfolio of Chinese cuisine brands namely Chowking, Yonghe King, and Hong Zhuang Yuan.

The three brands combined account for 23 percent of Jollibee’s system-wide sales in 2017. —Ted Cordero/VDS, GMA News