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Jollibee is raising its stake in America’s Smashburger to 85%
Jollibee Foods Corp. (JFC) on Tuesday announced plans to expand its stake in US-based Smashburger Master LLC. to majority ownership.
Jollibee will acquire an additional 45 percent in Smashburger for $100 million, via wholly-owned subsidiary Bee Good! Inc., according to a regulatory filing submitted by JFC vice president Valerie Amante.
The additional 45 percent will bring JFC’s stake in Smashburger to 85 percent since it acquired a 40-percent stake in the US restaurant chain in 2015.
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The balance of 15 percent will remain under Smashburger, a Denver, Colorado-based company which has more than 330 restaurants in 35 states.
The transaction will be settled in cash and is expected to be completed within the next two months subject to approvals in the US.
“With this acquisition of more shares, JFC will have a more significant business in the United States,” JFC chairman Tony Tan Caktiong said.
“The US will increase its contribution to our worldwide system-wide sales from 5 percent to 15 percent,” he said.
In a separate filing, JFC reported an 8.3 percent increase in net income to P1.821 billion in 2017, driven by double-digit sales. —Jon Viktor Cabuenas/VDS, GMA News