Jollibee completes divestment in China's San Pin Wang

Jollibee Foods Corp. (JFC) has completed the divestment of shareholdings in Chinese restaurant chain operator Guangxi San Pin Wang Food and Beverage Management Company Limited (San Pin Wang).

JFC disclosed to the Philippine Stock Exchange (PSE) on Tuesday that the divestment of shareholdings in San Pin Wang by wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) was done in favor Guanxi Zong Kai Food Beverage Investment Company Limited (GZK). GZK now owns 100 percent of San Pin Wang.

On March 9, 2012, JFC acquired 55 percent of San Pin Wang which – at that time – was operating 34 stores mostly in Nanning, Guangxi Province, the People's Republic of China.

San Pin Wang was able to expand to 71 stores as of November 30, 2016. It planned to further widen its footprint in the coming years.

"JFC's divestment of its shareholdings in San Pin Wang is part of its intention to concentrate its resources on businesses with greater potential," according to Jollibee, the largest fast food chain in the Philippines.

"JFC has decided to focus on building its Yonghe King business, its largest business in China with 315 stores (as of November 30, 2016)," it said. Yonghe King accounts for 8 percent of JFC's global system-wide sales.

JFC acquired in November the remaining 30-percent equity in joint venture company Happy Bee Foods Processing Pte. Ltd. from Hua Xia Harvest Holdings Pte. Ltd.

"The move is intended to focus on supporting Yonghe King by further improving food quality, strengthening food safety and accelerating product innovations," it said. — Jon Viktor Cabuenas/VS, GMA News