Jollibee shares get trading halt on Coffee Bean deal

Shares of stock in Jollibee Foods Corp. (JFC) got a one-hour trading halt from the Philippine Stock Exchange Inc. Wednesday after the fast-food giant announced it was buying The Coffee Bean & Tea Leaf for ta total consideration of $350 million.

The trading halt went in effect from 1:30 p.m. to 2:30 p.m., July 24.

“In order to give the investing public sufficient time to digest the material information disclosed by the Corporation, the Exchange will implement a one-hour trading halt on JFC shares today, July 24, 2019,” the PSE said.

JFC shares were trading at P266.00 per share before the trading halt took effect, down P6.80 or 2.49% from the previous close of P272.80 per share.

“The total consideration for this acquisition is $350 million on a debt-free basis (the acquired business will have no debt upon acquisition),” JFC said in a separate statement.

It is investing $100 million for 80% of a Singapore holding company—Jollibee Worldwide Pte. Ltd.—that will acquire Coffee Bean, with the 20% stake to be owned by JFC’s partner in its Vietnam coffee and restaurant business.

“The acquisition of Coffee Bean & Tea Leaf will be Jollibee’s largest and most multinational so far with business presence in 27 countries,” Jollibee Chairman Tony Tan Caktiong said.

JFC operates in 21 countries, with over 4,500 stores globally. Its brands include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan, and Smashburger.

The Coffee Bean & Tea Leaf is a coffee and tea shop chain owned by International Coffee& Tea LLC based in Los Angeles, California.

Founded in 1963, it had 1,189 outlets as of end 2018 of which 336 were company owned and 853 were franchised stores.

As of 2:31 p.m., JFC shares were trading down P9.80 or 3.59% at P263.00 per share from Tuesday’s close of P272.80 per share. —VDS, GMA News